Though summer temperatures have been scorching hot across many parts of the country, housing market activity remains tepid.

The national average 30-year fixed mortgage rate ended in July where it started before edging near 7% the first week of August. A basis point is one-hundredth of one percentage point.

Meanwhile, existing monthly home sales dropped 3.3%, with all four major U.S. regions posting year-over-year sales declines, according to the National Association of Realtors (NAR).

Meanwhile, the median existing-home sales broke through $400,000 for the first time in 2023, hitting $410,200—the second-highest price ever recorded—and is now poised to surpass the June 2022 all-time high of $413,800.

Despite high mortgage rates, the market remains as competitive as ever thanks to strong demand coupled with tight inventory supply, due, in part, to those who purchased homes in recent years at record-low interest rates staying put. These and other factors form a perfect affordability crisis storm that continues to sideline many aspiring homeowners.

Housing Market Predictions For 2023: When Will Home Prices Be Affordable Again? – Forbes Advisor