US existing home sales post second straight monthly decline in July

WASHINGTON, Aug 11 (Reuters) - U.S. existing location income fell for a 2nd consecutive period successful July, and a rebound is apt to beryllium constricted by ‌higher owe rates and choky supply.

Home income dropped 1.7% past period to a ‌seasonally adjusted yearly complaint of 4.06 cardinal units, the National Association of Realtors said connected Tuesday. Economists polled ​by Reuters had forecast location resales slipping to a complaint of 4.05 cardinal units.

Existing location income are counted astatine the closing of a contract. Last month's income apt reflected contracts signed successful May and June erstwhile owe rates resumed their upward inclination aft concisely pulling backmost ‌amid the ongoing struggle successful ⁠the Middle East. The mean complaint connected the fashionable 30-year fixed-rate owe has jumped 71 ground points since the warfare started successful February, ⁠data from owe financing steadfast Freddie Mac showed.

It averaged 6.69% past week, the highest level since July 2025. Higher owe rates are besides discouraging immoderate homeowners from selling, worsening the lodging shortage. ​Many ​homeowners person mortgages with fixed rates beneath 5%.

Home ​sales fell successful the Midwest and ‌South. They roseate successful the Northeast and were unchanged successful the West. Sales accrued 0.7% connected a year-over-year ground successful July.

"There's nary uncertainty that the lodging marketplace would beryllium thriving if mean owe rates were to instrumentality adjacent 6%," said Lawrence Yun, the NAR's main economist.

Existing lodging inventory decreased 1.9% to 1.54 cardinal units. It was down 0.6% from ‌a twelvemonth ago. At July's income pace, it would ​take 4.6 months to exhaust the existent inventory ​of existing homes, unchanged from June and ​a twelvemonth ago.

The median existing location terms past period accrued 2.0% ‌from a twelvemonth agone to $434,100. First-time buyers ​accounted for 29% of ​sales, down from 33% successful June and somewhat up from 28% a twelvemonth ago. A 40% stock successful this class is needed for a robust lodging market.

The ​median fig of days ‌on the marketplace for listed properties edged up to 29 from 28 successful ​June and a twelvemonth ago. Distressed sales, including foreclosures, were unchanged astatine 2%.

(Reporting ​by Lucia Mutikani; Editing by Andrea Ricci)