U.S. existing-home sales fall 1.7% in July as prices rise for 37th month

U.S. existing-home sales fell 1.7% in July from June to a seasonally adjusted annual rate of 4.06 million, slightly above economists' 4.05 million estimate and up 0.7% from a year earlier, as record July prices and mortgage rates near a one-year high kept affordability strained. The median sales price rose 2% from a year earlier to $434,100, extending annual gains to 37 straight months, while Freddie Mac's benchmark 30-year fixed mortgage rate climbed to 6.69% last week, its highest level in just over a year. Inventory remained tight at 1.54 million homes, equal to a 4.6-month supply and still below the roughly 5- to 6-month range viewed as a balanced market, while first-time buyers accounted for 29% of purchases, down from 33% in June. Sales have hovered near a 4 million annual pace for about three years, well below the historical norm near 5.2 million, underscoring a housing market that has struggled since mortgage rates began rising in 2022.

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