US home sales hit two-year low as prices and rates bite
The median US home-sale price rose 3.2% year over year to $407,730, the highest July level on record, while the monthly average 30-year fixed mortgage rate climbed to 6.54%, a one-year high.
Moreover, 14% of July’s home-sale agreements fell through before closing, the highest share since 2023.
“The housing market suffered from a mid-summer slump in July as would-be buyers grappled with record-high home prices, increasing mortgage rates and growing financial insecurity,” said Chen Zhao, head of economics research at Redfin.
“Many Americans simply can’t afford today’s housing costs, while others are holding off because they’re worried about the economy and/or their job security. The silver lining is that buyers who can afford a home may be able to negotiate on price and get concessions from sellers who are eager to offload their house.”
Existing-home sales fell 1.7% in July to a seasonally adjusted annual rate of 4.06 million, the second consecutive monthly decline, according to data released Tuesday by the National Association of Realtors (NAR).https://t.co/KM5arNzNVo
— Mortgage Professional America Magazine (@MPAMagazineUS) August 11, 2026
Texas and Seattle lead the retreat
The steepest declines were concentrated in Texas and the Pacific Northwest.
