U.S. existing-home sales were virtually unchanged from the previous month, dipping just 0.2% to a seasonally adjusted annual rate of 4.0 million units, according to the National Association of REALTORS® (NAR). Most of these transactions went under contract in June and July, when mortgage rates were 40 to 50 basis points higher than current levels. Year-over-year, sales increased 1.8%, with the strongest activity occurring in the Midwest, where the typical home price is 22% below the national median.

Closed Sales increased 12.3 percent for Existing Homes homes and 23.0 percent for New Construction homes. Pending Sales decreased 2.4 percent for Existing Homes homes and 7.4 percent for New Construction homes. Inventory increased 10.6 percent for Existing Homes homes but decreased 0.1 percent for New Construction homes.

Median Sales Price increased 1.9 percent to $300,500 for Existing Homes homes but decreased 1.9 percent to $525,000 for New Construction homes. Days on Market increased 10.0 percent for Existing Homes homes but decreased 1.9 percent for New Construction homes. Months Supply of Inventory increased 4.2 percent for Existing Homes homes but decreased 5.5 percent for New Construction homes.

Nationally, housing inventory declined for the first time this year, slipping 1.3% month-over-month to 1.53 million units, representing a 4.6-month supply at the current sales pace, according to NAR. Despite the monthly drop, total inventory remained 11.7% higher than the same time last year. Meanwhile, the median existing-home price rose 2% year-over-year to $422,600, though it was essentially flat compared to the prior month.