Existing Home Sales Edge Higher in July
Existing home sales increased for the first time in five months, according to the National Association of Realtors, as improving inventory and declining mortgage rates motivated more prospective buyers to act.
Despite these changes, sales remained sluggish and low inventory continued to push up median home prices. However, NAHB expects increased activity in the coming months as mortgage rates continue to moderate. Improving inventory is likely to ease home price growth and enhance housing affordability.
Home owners with lower mortgage rates have opted to stay put, avoiding trading existing mortgages for new ones with higher rates. This "lock-in" trend is driving home prices higher and holding back inventory. Mortgage rates are expected to continue to decrease gradually, leading to increased demand (and unlocking more of the lock-in inventory) in the coming quarters.
Total existing home sales rose 1.3% to a seasonally adjusted annual rate of 3.95 million in July. This marks the first increase after four months of declines. On a year-over-year basis, sales were still 2.5% lower than a year ago.
At the current sales rate, July unsold inventory sits at a 4.0-month supply (down from 4.1 last month, but up from 3.3 a year ago). This inventory level remains low compared to balanced market conditions (a 4.5- to 6-month supply) and illustrates the long-run need for more home construction.
The July median sales price of all existing homes was $422,600, up 4.2% from last year. This marked the 13th consecutive month of year-over-year increases. The median condominium/co-op price in July was up 2.7% from a year ago at $367,500. This rate of price growth will slow as inventory increases.
NAHB Senior Economist Fan-Yu Kuo provides more details, including regional and demographic breakdowns, in this Eye on Housing post.
Latest from NAHBNow
Economics
Nov 05, 2026
Multifamily Developer Confidence Weakens in Third Quarter
Confidence in the market for new multifamily housing weakened year-over-year in the third quarter, according to the Multifamily Market Survey (MMS) released today by the National Association of Home Builders (NAHB). The MMS produces two separate indices. The Multifamily Production Index (MPI) had a reading of 41, down five points year-over-year, while the Multifamily Occupancy Index (MOI) had a reading of 69, also down five points year-over-year.
Advocacy
Nov 04, 2026
Podcast: What the Blue Wave May Mean for Housing
On the latest episode of NAHB’s podcast, Housing Developments, CEO Jim Tobin and COO Paul Lopez are joined by Chief Advocacy Officer Ken Wingert to discuss the immediate aftermath of the midterm elections.
Latest Economic News
Economics
Nov 04, 2026
Mortgage Applications Decline as Higher Rates Boost ARM Share
Mortgage application activity declined in October as the 30-year fixed mortgage rate rose sharply again. The Mortgage Bankers Association’s (MBA) Market Composite Index, a measure of total mortgage application volume, fell 14.1% month-over-month in October on a seasonally adjusted basis. Compared to a year ago, total mortgage applications were 39.8% lower.
Economics
Nov 04, 2026
Laundry Room Locations in New Homes and Apartments, 2025
In 2025, the majority of homes started featured laundry connections on the first floor (70%), according to the Census’s Survey of Construction. Laundry located on the second floor or higher was the second most prevalent at 27%. The basement, garage, and other locations all had a 1% or lower share.
Economics
Nov 03, 2026
Mortgage Rates Climb in October Amid Accelerating Inflation
Mortgage rates rose sharply again in October as the U.S. treasury yields surged. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 7.33% in October, up 47 basis points (bps) from September. The rate reached 7.40% in early October, its highest level since 2023, before easing toward the end of the month.