US existing home sales drop in July as mortgage rates weigh on buying

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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.