Existing home sales dropped 1.7 per cent on a month-on-month basis. [Courtesy]
Sales of previously owned homes in the United States dropped in July, industry data released on Tuesday showed, as high mortgage rates -- and fears of further rate hikes -- weighed on activity.
Existing home sales dropped 1.7 percent on a month-on-month basis to a seasonally adjusted annual rate of 4.06 million in July, the National Association of Realtors (NAR) data showed.
The average rates of 30-year mortgages ticked up steadily in July, coming in at 6.66 percent by the end of the month -- their highest level since a year ago.
"Home sales have been remarkably stable, even amid the rising mortgage rate environment of the past few months," said NAR Chief Economist Lawrence Yun.
"Year-to-date sales are up 2.4 percent and there's no doubt that the housing market would be thriving if average mortgage rates were to return near six percent," Yun said.
Heather Long, chief economist at Navy Federal Credit Union, agreed that sales were "stalling" due to the level of mortgage rates.
"The 30-year mortgage is back at 6.7 percent and buyers just aren't interested in locking in such a high rate," she said.