July Home Sales Rise as Prices Approach Inflection Point
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US Existing Home Sales Unexpectedly Rise in July 2025
Sales of previously owned homes in the United States rose by 2% in July 2025, reaching 4.01 million units on a seasonally adjusted, annualized basis, according to the National Association of Realtors (NAR).This increase defied expectations of a slight decline from housing analysts. The July 2025 sales figure represents a 0.8% increase compared to July 2024.
A “For Sale” sign outside a house in the Capitol Hill neighborhood of Washington, DC, on August 12, 2025. (Al Drago | Bloomberg | Getty Images)
Mortgage Rate Impact
The timing of these sales suggests a correlation with declining mortgage rates.The sales counted are based on closings, meaning contracts were likely signed in May and June 2025. During this period, the average rate on a 30-year fixed mortgage experienced a decline. The rate briefly exceeded 7% in May 2025 but closed June at 6.67%, as reported by mortgage News Daily.
Inventory Levels
As of July 2025, there were 1.55 million homes available for sale, according to the NAR. This represents the total housing inventory.
| Metric | July 2025 | July 2024 | Change |
|---|---|---|---|
| Existing Home Sales (Seasonally Adjusted, Annualized) | 4.01 million | 3.98 million | +0.8% |
| 30-Year Fixed Mortgage Rate (End of Month) | 6.67% | 6.81% | -0.14% |
| total Housing Inventory | 1.55 million | 1.31 million | +18.3% |
Regional Variations
Further details on regional sales variations will be released by the NAR in their full report. Analyzing these regional trends is crucial for understanding the nuanced dynamics of the housing market across the country.