Home resales in July rose slightly as more affordable units came to market and interest rate sensitive homebuyers took advantage of a dip in rates early in June to lock in a more affordable loan. The Freddie Mac rate for a 30-year fixed rate mortgage fell from 6.89 percent in the May 29 week to 6.76 percent in the June 5 week. Rates started to rise again in the following three weeks but there was another dip from 6.85 percent in the June 26 week to 6.67 percent in the July 3 week. This was enough for alert mortgage shoppers to secure better loan terms for contracts that mostly settled in July.

The NAR reports sales of existing homes are up 2.0 percent in July to a 4.01 million unit seasonally adjusted annual rate after no revision to 3.93 million units in the prior month. The rise is above the consensus of 3.90 million units in the Econoday survey of forecasters. The July reading is in line with the performance seen so far in 2025 as potential homebuyers juggle worries about the economic outlook and job security, finding a favorable mortgage rate, and securing a contract at an affordable price.

The supply of homes for sale is little changed at 4.6 months in July after 4.7 in June and 4.6 in May.
The median price of a home resale is $422,400 in July, down 2.4 percent from $432,700 in June and up only 0.2 percent from a year ago. Prices for existing homes typically decline in the second half of the year. What is more notable is that year-over-year prices are not escalating.

Sales of existing single-family homes are up 2.0 percent in July to 3.640 million units and mutli-unit sales are up 2.8 percent to 370,000 units.

Existing homes listed are on the market for an average of 28 days in July, much the same as the 27 days in June and May, but slower than 24 days in July 2024. First-time buyers account for 28 percent of all sales in July, down from 30 percent in June and May. Distressed home sales remain low at 2 percent of the total, down from 3 percent in June and above 1 percent in July 2024.

Sales expected to remain depressed at an annual 3.90 million unit rate in July compared with 3.93 million in June as consumers stay cautious and affordability remains a big problem.

Existing home sales tally the number of previously constructed homes, condominiums and co-ops in which a sale closed during the month. Existing homes (also known as home resales) account for a larger share of the market than new homes and indicate housing market trends.

This provides a gauge of not only the demand for housing, but the economic momentum. People have to be feeling pretty comfortable and confident in their own financial position to buy a house. Furthermore, this narrow piece of data has a powerful multiplier effect through the economy, and therefore across the markets and your investments. By tracking economic data such as home resales, investors can gain specific investment ideas as well as broad guidance for managing a portfolio.

Even though home resales don't always create new output, once the home is sold, it generates revenues for the realtor. It brings a myriad of consumption opportunities for the buyer.

Refrigerators, washers, dryers and furniture are just a few items home buyers might purchase. The economic"ripple effect" can be substantial especially when you think a hundred thousand new households around the country are doing this every month. Since the economic backdrop is the most pervasive influence on financial markets, home resales have a direct bearing on stocks, bonds and commodities. In a more specific sense, trends in the existing home sales data carry valuable clues for the stocks of home builders, mortgage lenders and home furnishings companies.