Existing Homes Sales inched lower in July from June falling 2.2% to an annual rate of 4.07 million units and are down nearly 17% from a year ago. “Two factors are driving current sales activity – inventory availability and mortgage rates,” said NAR Chief Economist Lawrence Yun. “Unfortunately, both have been unfavorable to buyers.”

However, inventories jumped nearly 4% monthly to a 3.3-month supply from 3.1 in June with normal levels around six months. The median price dropped to $406,700 from $410,000 in June. 

The takeaway … a glimmer of hope is seen with the the uptick in inventories and lower prices while the new home sales market is thriving.