U.S. home sales rise as rates ease

July shows a cautious rebound as mortgage rates ease, more homes enter the market, and prices rise at a slower pace.

US housing market steadies as rates ease and inventory climbs

Sales of previously occupied homes rose 2% in July to a seasonally adjusted annual rate of 4.01 million, according to the National Association of Realtors. The gain comes with a 0.8% year over year uptick and a steady pullback in mortgage rates that helped buyers regain some negotiating power. Inventory expanded to 1.55 million homes, the most in five years, pushing the months of supply to about 4.6 and supporting a slight improvement in affordability.

The July data suggest a fragile, rate-led upturn rather than a full rebound. With rates easing to around 6.58% for a 30-year loan, buyers gain options, and more listings reduce bid pressure. Yet affordability remains a hurdle as prices keep rising, albeit slowly, and the market still trails pre pandemic inventory levels. Analysts caution that any renewed spike in rates could reverse the progress, underscoring how sensitive this recovery is to financing costs.

Highlights

The housing market is inching toward stability, but the next rate move could tilt the balance again.