July housing cools as mortgage costs pressure buyers

U.S. existing-home sales fell 1.7% in July to a 4.06 million SAAR, the second straight monthly drop, as mortgage rates climbed to 6.66% and prices rose 2% year over year to a median of $434,100; year-to-date sales are up 2.4%, but affordability remains the main drag on activity, with economists noting the higher rates reduce buyers’ purchasing power and Zillow signaling a market peak may have occurred.