US existing home sales fell for a second straight month in July 2026, driven by higher mortgage rates and sustained house price increases due to tight supply. Elevated mortgage rates are discouraging both potential buyers and current homeowners from moving, further contributing to low housing inventory. While sales declined in the Midwest and South, they rose in the Northeast and were unchanged in the West; overall, sales were up 0.7% year-over-year. Homes priced $250,000 and below showed the greatest weakness in sales due to a shortage of affordable starter homes, while sales of homes over $750,000 saw double-digit growth, reflecting a K-shaped economy. Zoom in: The median existing home price rose 2.0% from a year earlier to $434,100.