Home sales rose 7% year-over-year in July, but this reflects deals made earlier when mortgage rates were lower. Currently, new contracts barely increased and fell from June, signaling fading momentum. Rising mortgage rates and inflation may reduce affordability, pushing buyers to the sidelines. Inventory grew slightly, giving buyers more leverage, but supply remains below pre-pandemic levels. Sales are forecasted to grow modestly in 2026, with prices stable and rates easing slowly.
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