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US existing homes fall 1.7% in July as record prices, high mortgage rates stifle would be-buyers
ABC News - Breaking News, Latest News and Videos • • general
Key Points:
- Existing U.S. home sales declined 1.7% in July to a seasonally adjusted annual rate of 4.06 million units, slightly above economists' expectations but still reflecting a slowdown due to high prices and mortgage rates.
- The median sales price reached a record $434,100 in July, up 2% from a year earlier, while the average 30-year fixed mortgage rate rose to 6.69%, the highest in over a year, increasing borrowing costs for buyers.
- Housing inventory remains low with 1.54 million unsold homes, translating to a 4.6-month supply, below the 5-6 months considered balanced, contributing to continued market tightness.
- First-time homebuyers accounted for 29% of sales in July, down from 33% in June and below the historical average of around 40%, indicating challenges for new entrants to the market.
- Regional disparities persist, with the Northeast experiencing a 5.2% year-over-year price increase driven by particularly low inventory levels.
