US home sales dropped to their lowest in nearly two years in July due to record-high prices, rising mortgage rates, and economic concerns. Pending sales fell 2.5% month over month, with the median home price reaching $407,730, a July record. The 30-year mortgage rate hit 6.54%. Sales declined sharply in Texas and the Pacific Northwest, with Seattle experiencing the steepest drop. Some markets like Milwaukee saw growth due to affordability.