Processing ContentClosed home sales surged 7% year-over-year in July, marking the strongest annual gain seen so far this year. Total closed sales reached 382,898 homes, according to Zillow's July Market report. The other side of the coin is that newly pending listings fell 7.7% from June and grew just 0.3% year-over-year as rising mortgage rates prompts buyers to pause. Unless mortgage rates reverse, higher rates in August will likely push the typical mortgage payment above 2025 levels, erasing the short affordability advantage. "Unfortunately, the weak growth in newly pending sales in July and the worsening rate environment portend a weaker half of the year for sales growth, with flat to declining transaction volumes for the remainder of the year in some regions," said Mischa Fisher, chief economist at Zillow.