Sales of previously occupied U.S. homes fell 1.7% in July to a 4.06 million annual rate, slightly above expectations but still sluggish. The median sales price rose 2% year-over-year to $434,100, with prices hitting record highs. Mortgage rates reached 6.69%, the highest in over a year, limiting buyer affordability. Inventory remains low at 1.54 million homes, a 4.6-month supply below the balanced market norm. First-time buyers accounted for 29% of sales, below historical averages.