According to data from the National Association of Realtors, existing home sales in the United States fell 1.7% over the month to an annualized rate of 4.06 million units in July, slightly above forecasts for 4.05 million. The July reading marked a decrease from 4.09 million in the previous month. Total existing home sales remained up 0.7% over the year. Home prices continued to rise, with the median sales price rising 2.0% over the year to $434,100. Total housing inventory stayed at a 4.6-month supply of unsold inventory, flat from June.
The ABA Office of the Chief Economist views the continued sluggish home sales as a headwind to mortgage demand. Elevated mortgage rates and affordability challenges have discouraged both potential buyers and existing homeowners from moving, reducing bank revenue from mortgage originations and refinancing activities. Slower turnover in the housing market may also dampen demand for residential construction loans and other forms of consumer credit associated with real estate transactions.
