“Home sales increased despite mortgage rates rising,” said NAR Chief Economist Lawrence Yun. “It is welcoming to see incomes rising faster than home prices, which has helped boost affordability—but the big short-term challenge to affordability is coming from rising mortgage rates,” Yun said in a statement. One-fifth of markets (20%; 44 of 221) experienced home-price declines in the second quarter, down from 27% in the first quarter and down 24% overall from a year ago. Housing affordability changed little in the second quarter amid mortgage rates lingering in the mid-6% range. Lack of inventory and affordability continued to impact first-time buyers during the second quarter.