US Home Sales Increased for the Second Consecutive Month in July

Source: National Association of Realtors

Sales of existing homes in July increased by 2% from June to an annualized rate of 5.99 million units. DXY down -0.41%, EUR USD up +0.34%

• The sales data are based on closings so it reflects contracts signed in May and June. Sales were 1.5% higher than July last year.
• Sales are likely improving because of rising supply. The inventory of homes at the end of July was 1.32 million, 12% below a year ago.
•  At the current sales rate, that represents a 2.6-month supply.
• The median price of existing homes sold in July was $359,900. That is a 17.8% increase compared with July 2020. Annual price gains were larger last month.
• The latest data on sales of newly built homes from June showed a sharp decrease both monthly and annually. That data set is based on signed contracts.
• Mortgage rates did not change much throughout May and June when most of these deals were made, but they reduced more sharply in July.
• Continued economic recovery is important to maintaining sales momentum and rising Covid cases could hurt sales off course.