US existing home sales fell 1.7% MoM in July, missing estimates

Published Aug 11, 02:01 PM UTC

Existing home sales in the US fell for the second consecutive month in July 2026, declining 1.7% from June to a seasonally adjusted annual rate of 4.06 million, according to the National Association of Realtors. The drop exceeded economists' expectations of a 1% decline, driven by rising mortgage rates that increased from 6.43% to 6.66% during the month and high home prices, with the median price reaching $434,100, up 2% year-over-year. The housing market remains largely frozen due to limited affordability. However, a small bright spot emerged as sales saw a 0.7% increase from a year ago, with stronger activity in the Midwest and West. Year-to-date sales through July are up 2.4% compared to the same period in 2025. Analysts warn that the second half of the year may disappoint, as Zillow suggested July could represent a market peak with buyers discouraged by the highest mortgage rates in over a year. NAR chief economist Lawrence Yun noted that mortgage rates around 6.7% significantly reduce the pool of potential buyers compared to 6% rates.