Please ensure Javascript is enabled for purposes of website accessibility
US Home Sales Ended a 4-Month Slide in July Amid Easing Mortgage Rates, More Homes on the Market
gvw_ap_news
By Associated Press
Published 8 months ago on
August 22, 2024

Existing home sales rose 1.3% in July, ending a four-month decline as mortgage rates eased and inventory increased. (AP File)

Share

Getting your Trinity Audio player ready...

LOS ANGELES — Sales of previously occupied U.S. homes ended a four-month slide in July as easing mortgage rates and a pickup in properties on the market encouraged home shoppers.

Existing home sales rose 1.3% last month from June to a seasonally adjusted annual rate of 3.95 million, the National Association of Realtors said Thursday.

Sales fell 2.5% compared with July last year and are running below last year’s pace. The latest home sales came in slightly higher than the 3.92 million pace economists were expecting, according to FactSet.

Home prices increased on an annual basis for the 13th consecutive month. The national median sales price rose 4.2% from a year earlier to $422,600. While down slightly from the all-time high set in June, last month’s median sales price was the highest on record for the month of July.

“Despite the modest gain, home sales are still sluggish,” said Lawrence Yun, the NAR’s chief economist. “But consumers are definitely seeing more choices, and affordability is improving due to lower interest rates.”

The U.S. housing market has been in a deep sales slump dating back to 2022, when mortgage rates began to climb from pandemic-era lows. Existing home sales sank to a nearly 30-year low last year as the average rate on a 30-year mortgage surged to a 23-year high of 7.79%, according to mortgage buyer Freddie Mac.

Mortgage Rates Ease, Boosting Affordability

Mortgage rates have been mostly easing since reaching 7.22% in early May. This month the average rate has come down to around 6.5%, its lowest level in more than a year.

Still, homeownership remains out of reach for many Americans after years of surging home prices. Consider, the median U.S. home sales price has surged 51% over the past five years.

Home shoppers who could afford to buy benefited last month from a modest pickup in properties on the market.

All told, there were about 1.33 million unsold homes at the end of July, up 0.8% from June and 19.8% from July last year, NAR said.

That translates to a 4-month supply at the current sales pace, up from 3.3-month pace at the end of July last year. Traditionally, a 5- to 6-month supply is considered a balanced market between buyers and sellers.

Homes Taking Longer to Sell

Another factor helping boost inventory: Homes are taking longer to sell, though they’re still being snapped up relatively quickly.

Homes typically stayed on the market for 24 days in July before they were sold, up from 22 days in June and 20 days in July last year.

And fewer homes received multiple offers. A quarter of the homes that sold last month were bought for more than their original list price, down from 35% in July last year.

“So, we still have lingering multiple offers, but not as intense as it was one year ago,” Yun said.

First-time homebuyers who don’t have any home equity to put toward their down payment continue to have a tough time getting into the housing market. They accounted for 29% of all homes sold last month, unchanged from June, but down from 30% in July last year. They’ve accounted for 40% of sales historically.

Homebuyers who can afford to sidestep mortgage rates and pay all cash for a home accounted for 27% of sales last month, down from 28% in June, but up from 26% in July 2023. And about 13% of homes sold last month were bought by individual investors or homeowners looking to buy a second home, down from 16% a year earlier, NAR said.

Future Outlook for Home Sales

Home sales may continue to pick up in coming months if mortgage rates follow their downward trajectory, many economists expect.

Signs of waning inflation and a cooling job market have raised expectations that the Federal Reserve will cut its benchmark interest rate next month for the first time in four years.

Mortgage rates are influenced by several factors, including how the bond market reacts to the central bank’s interest rate policy decisions. That can move the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing home loans.

“Easing inflation helped accelerate the decline in mortgage rates in mid-July and rates currently hover near 15-month lows,” said Daniele Hale, Realtor.com’s chief economist. “This is likely to bode well for buyers in the fall — a typically advantageous season for home shoppers.”

Realtor.com forecasts that the average rate on a 30-year mortgage will fall to 6.3% by the end of the year.

RELATED TOPICS:

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Virginia Giuffre, Voice in Epstein Sex Trafficking Scandal, Dies at 41

DON'T MISS

California Proposes Allowing Testing of Self-Driving Heavy-Duty Trucks

DON'T MISS

Higher Taxes on Millionaires? Trump Says He’s Open, but Many in His Party Are Not

DON'T MISS

Ex-US Rep. George Santos Sentenced to Over 7 Years in Prison for Fraud and Identity Theft

DON'T MISS

Selma Mayor Charged With Electioneering Violation on Election Day

DON'T MISS

Fresno Air Improves. Where Does It Rank in the US?

DON'T MISS

As Harris Ponders Run for CA Governor, Is She Prepared for the Daunting Job?

DON'T MISS

Stocks Rise With Tech-Related Shares, Notch Weekly Gains; Dollar Up

DON'T MISS

Conflicting US-China Talks Statements Add to Global Trade Confusion

DON'T MISS

Driving Near the Fresno Airport Next Week? Plan for Road Closures

UP NEXT

California Proposes Allowing Testing of Self-Driving Heavy-Duty Trucks

UP NEXT

Higher Taxes on Millionaires? Trump Says He’s Open, but Many in His Party Are Not

UP NEXT

Ex-US Rep. George Santos Sentenced to Over 7 Years in Prison for Fraud and Identity Theft

UP NEXT

Selma Mayor Charged With Electioneering Violation on Election Day

UP NEXT

Fresno Air Improves. Where Does It Rank in the US?

UP NEXT

Stocks Rise With Tech-Related Shares, Notch Weekly Gains; Dollar Up

UP NEXT

Conflicting US-China Talks Statements Add to Global Trade Confusion

UP NEXT

Driving Near the Fresno Airport Next Week? Plan for Road Closures

UP NEXT

Misty Her: Push for Fresno Unified Turnaround Starts Now With ‘Boots on the Ground’

UP NEXT

Fresno Police Arrest 17 in Domestic Violence Crackdown

Ex-US Rep. George Santos Sentenced to Over 7 Years in Prison for Fraud and Identity Theft

10 hours ago

Selma Mayor Charged With Electioneering Violation on Election Day

10 hours ago

Fresno Air Improves. Where Does It Rank in the US?

10 hours ago

As Harris Ponders Run for CA Governor, Is She Prepared for the Daunting Job?

11 hours ago

Stocks Rise With Tech-Related Shares, Notch Weekly Gains; Dollar Up

11 hours ago

Conflicting US-China Talks Statements Add to Global Trade Confusion

11 hours ago

Driving Near the Fresno Airport Next Week? Plan for Road Closures

12 hours ago

Misty Her: Push for Fresno Unified Turnaround Starts Now With ‘Boots on the Ground’

12 hours ago

Fresno Police Arrest 17 in Domestic Violence Crackdown

12 hours ago

What’s Next for Fresno Smoke Shop Ordinance: Lawsuit, Veto, Override?

13 hours ago

Virginia Giuffre, Voice in Epstein Sex Trafficking Scandal, Dies at 41

Virginia Giuffre, a former victim of Jeffrey Epstein’s sex-trafficking ring who said she was “passed around like a platter of fruit” as a te...

6 hours ago

Virginia Roberts Giuffre speaks to reporters in New York on Aug. 27, 2019. Giuffre, a former victim of Jeffrey Epstein’s sex-trafficking ring who said she was “passed around like a platter of fruit” as a teenager to rich and powerful predators, including Prince Andrew of Britain, died on Friday at her farm in Western Australia. She was 41. (Jefferson Siegel/The New York Times)
6 hours ago

Virginia Giuffre, Voice in Epstein Sex Trafficking Scandal, Dies at 41

9 hours ago

California Proposes Allowing Testing of Self-Driving Heavy-Duty Trucks

10 hours ago

Higher Taxes on Millionaires? Trump Says He’s Open, but Many in His Party Are Not

10 hours ago

Ex-US Rep. George Santos Sentenced to Over 7 Years in Prison for Fraud and Identity Theft

Selma Mayor Scott Robertson (left) has been charged with misdemeanor electioneering for allegedly campaigning near voters at a polling place during the November 2024 election. (Facebook)
10 hours ago

Selma Mayor Charged With Electioneering Violation on Election Day

10 hours ago

Fresno Air Improves. Where Does It Rank in the US?

11 hours ago

As Harris Ponders Run for CA Governor, Is She Prepared for the Daunting Job?

11 hours ago

Stocks Rise With Tech-Related Shares, Notch Weekly Gains; Dollar Up

Help continue the work that gets you the news that matters most.

Search

Send this to a friend