Home Sales Slip, Prices Show Strength - Weekly Update Powered by MBS Highway 7-13-26
Week of July 6, 2026, in ReviewExisting home sales slipped slightly in June, while home prices continued their seasonal upswing. Here are the key takeaways.
Existing Home Sales Ease in June
After rising for two consecutive months, existing home sales slipped 2.4% from May to June, reaching a seasonally adjusted annual rate of 4.09 million homes. Despite the monthly decline, sales were nearly 3% higher than a year ago. Housing inventory also edged lower from May but remains 1.3% above year-ago levels.
What's the bottom line?
According to NAR Chief Economist Lawrence Yun, the recent ups and downs in home sales highlight just how sensitive buyers are to changes in mortgage rates and overall affordability.
While inventory has improved compared to last year, the housing market is still under supplied by historical standards. If buyer demand picks up more quickly than the supply of homes for sale, home prices could come under renewed upward pressure, reinforcing the need for more housing inventory.
Homeownership Continues to Build Wealth
Home prices increased by 0.6% from April to May and are 0.8% higher than a year ago, according to Cotality's latest Home Price Insights report.
What's the bottom line?
Cotality also noted a strong seasonal upswing, with home prices rising 1.6% over the past three months. Looking ahead, the firm forecasts prices will increase another 4.8% over the next year.
For current homeowners and prospective buyers alike, it's another reminder of the long-term financial benefits of owning a home. For example, a $500,000 home that appreciates by 5% would gain about $25,000 in value over the course of a year, showing how steady appreciation can help build wealth over time.
Fed Announces Task Force "A-Team
Fed Chair Kevin Warsh has launched five new task forces focused on improving how the Federal Reserve gathers economic data, communicates with the public, and evaluates key areas such as inflation, jobs, productivity, and its balance sheet.
What's the bottom line?
The newly appointed members bring a wide range of experience, including former Fed officials, international central bank leaders, and business executives. The goal is to help modernize the Fed's decision-making and strengthen its evaluation of economic conditions when setting future policy.
Warsh expects the task forces to deliver their recommendations by the end of the year.
Jobless Claims Snapshot
New unemployment claims came in at 215,000, holding at roughly the same level for the third straight week. Meanwhile, continuing unemployment claims remained elevated at 1.814 million.
Initial jobless claims are still relatively low by historical standards, but they may not capture the full picture of today's labor market. Some workers who lose their jobs are turning to freelance, contract, or gig work instead of filing for unemployment benefits, which may be understating labor market weakness in the claims data.
Meanwhile, the elevated level of continuing claims suggests that any unemployed workers are taking longer to find their next job, indicating a job market that remains challenging for those actively searching for work.
What to Watch Ahead.
It's an important week for inflation data, beginning with June's Consumer Price Index (CPI) on Tuesday, followed by the Producer Price Index (PPI) on Wednesday. Thursday brings Retail Sales, weekly Jobless Claims, Pending Home Sales, and home builder confidence. More housing news follows on Friday with June Housing Starts and Building Permits.
MBS Highway provides all data and analysis.
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Mike Nelson, CEO - Efficient Lending, Inc. 720.419.3016 | mike@efficientlending.net |
