Existing home sales rose 6.5 percent in July to a rate of 5.39 million from 5.06 million in June, according to the National Association of Realtors. For the 25th consecutive month, sales have remained above year-ago levels.
The national median sales price for all existing homes was $213,500, which is 13.7 percent above July 2012. This rate is only 7.3 percent below the all-time record of $231,400 set in July of 2006.
There were 2.28 million existing homes for sale at the end of July, 5.6 percent more than at the end of June. This represents a 5.1-month supply at the current sales pace.
"Mortgage interest rates are at the highest level in two years, pushing some buyers off the sidelines," said Lawrence Yun, NAR chief economist, in a statement. "The initial rise in interest rates provided strong incentive for closing deals. However, further rate increases will diminish the pool of eligible buyers."
