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U.S. home sales fall 4.1% in July to lowest level in nearly two years
Redfin said the monthly average mortgage rate rose to 6.54%, while pending home sales fell 2.5% and 14% of deals fell through, the highest share since 2023.
U.S. home sales declined 4.1% month over month in July, landing at the lowest level in nearly two years, according to Redfin News. Pending home sales, a real-time indicator of homebuying demand, fell 2.5% to the weakest level since December.
Redfin linked the drop to historically high housing costs that are pricing out many would-be buyers, alongside elevated mortgage rates. The median U.S. home-sale price rose 3.2% year over year to $407,730, while the monthly average mortgage rate increased to a one-year high of 6.54%.
Economic uncertainty also weighed on demand, with concerns about the labor market and inflation making some buyers hold off on major financial commitments. Redfin added that some contracts failed after offers, with 14% of July home-sale agreements falling through, the highest share since 2023.
The decline varied by market, with home sales falling fastest in parts of Texas, including San Antonio (-12.6% year over year), Dallas (-10%) and Fort Worth (-9.9%), plus Detroit (-9.3%) and Seattle (-9.1%). Redfin said pending home sales dropped most sharply in Seattle, down 15.6% year over year, and noted Texas’ slowdown is partly tied to buyers having more choices after years of homebuilding.