U.S. Home Sales Rose 2% in July Despite Cost Hurdles

- Market sees unexpected boost from lower mortgage rates and increased inventory. - Affordability challenges persist, limiting access for first-time buyers. On August 21, 2025, Cryptopolitan reported that U.S. home sales rose 2% in July. Sales reached a seasonally adjusted annual rate of 4.01 million units, an unexpected growth that defied predictions of a market downturn. A temporary dip in mortgage rates during early summer largely drove the surge, prompting buyers to lock in agreements during May and June. Data from the National Association of Realtors revealed a notable increase in housing inventory, which climbed 15.7% year-over-year to its highest level since May 2020. However, affordability remains a pressing issue, as high borrowing costs and reduced purchasing power have pushed many first-time homebuyers out of the market. This has led to declines in transactions for lower-priced homes. Conversely, sales of luxury homes, priced at $1 million and above, rose 7.1% year-over-year, highlighting a growing disparity in the housing sector. Investors also became more active, accounting for 20% of all purchases in July, up from 13% during the same period last year. Additionally, all-cash transactions increased to 31% of total sales. In a report on August 21, NAR Chief Economist Lawrence Yun described this trend as “unusually high,” adding that the phenomenon may be fueled by gains from stock market investments or accumulated housing wealth.