Existing home sales in the United States fell for a second straight month in July, dropping 1.7% to a seasonally adjusted annual rate of 4.06 million units as elevated mortgage rates and tight inventory weigh on the market; a slowdown mirrored in the U.K., where agreed home sales fell 9% year-over-year over the past four weeks.
Releasing the latest figures on Tuesday, the National Association of Realtors (NAR) attributed the decline to contracts signed in May and June, when 30-year mortgage rates resumed climbing after briefly dipping amid the Middle East conflict. Rates have risen 71 basis points since the war began in February, according to Freddie Mac, averaging 6.69% last week; the highest since July 2025. Inventory fell 1.9% to 1.54 million units, leaving 4.6 months of supply, while the median home price rose 2.0% year-over-year to $434,100. First-time buyers accounted for just 29% of sales, down from 33% in June and well below the 40% share NAR considers healthy.
Across the Atlantic, elevated mortgage rates and political uncertainty are stalling the United Kingdom market more than usual for this time of year. With fewer sales completing, inventory is building: eight of the U.K.’s 11 regions now have more homes listed than a year ago, giving buyers greater negotiating leverage and pushing prices down in pricier southern markets, while northern regions remain comparatively resilient.
IAM Member Impact: American members in the domestic moving market should brace for continued home-sale contingency delays as rate-locked homeowners stay put and resale inventory tightens further. In the U.K., a slower home-sale market and rising inventory point to longer time-on-market for sellers, which can push back move dates and complicate resource planning. Conversely, resilient markets in the north of the country suggest steadier regional moving demand there.