US existing homes fall 1.7% in July as record prices, high mortgage rates stifle would be-buyers

WASHINGTON (AP) — Sales of previously occupied U.S. homes slowed again in July as record prices and the highest mortgage rates in a year prove to be an insurmountable hurdle for many prospective homebuyers.

Existing home sales fell 1.7% last month from June to a seasonally adjusted annual rate of 4.06 million units, the National Association of Realtors said Tuesday. That’s slightly above the 4.05 million pace economists were expecting, according to FactSet.

July sales, however, were up 0.7% compared with last year.

Home prices continued to rise, hitting unprecedented levels for July. The U.S. median sales price increased 2% from a year earlier, to $434,100.

Last week, mortgage buyer Freddie Mac reported that the benchmark 30-year fixed rate mortgage rate rose to 6.69%, its highest level in just over a year. It was the fifth consecutive week that the average rate rose, marking the latest strain for prospective homebuyers who are facing steep borrowing costs.