Existing Home Sales Drop 1.7% Amid Persistent High Rates

Existing home sales declined 1.7 percent in July, extending a stretch of weak demand driven by record prices and mortgage rates that remain near multi-year highs. The drop left buyers on the sidelines even as some lenders reported modest stabilization in borrowing costs. Sales volume has now fallen for multiple months, with inventory failing to expand enough to ease competition or prices. Mortgage application data showed mixed weekly movements, while daily rate trackers from Zillow recorded the 30-year fixed average rising six basis points to 6.65 percent. A separate preview of July consumer price data pointed to a possible further easing of inflation to 3.4 percent, a development that could influence Federal Reserve decisions on rates later this summer. The combination of elevated borrowing costs and limited supply continues to define the market, with August historically one of the slowest sales periods now appearing even softer than last year. Refinance activity remained well below year-ago levels, and purchase applications showed little year-over-year improvement. Analysts note that any sustained improvement in sales will require clearer movement in either rates or available listings, neither of which has materialized in recent releases.