Existing home sales in July were down nearly 6% from the previous month and plunged about 20% from the same period last year.
In particular, home sales fell to a seasonally adjusted annual rate of 4.81 million units, falling to their lowest level since November 2015, excluding a brief dip at the start of the pandemic.
July sales figures are based on deal completions, so contracts were likely signed in May and June, a tough time for mortgages that saw interest rates soar above 6%, according to Mortgage News Daily.
They then returned to the high 5% range, however they had started the year at 3%, so the hit to prices in June was significant, especially combined with the jump in inflation.
Homebuyers are also still facing tight supply. There were 1.31 million homes for sale in July, the same as the same month last year.