June brought little relief to the challenging housing market as existing home sales have reached a six-month low, according to Marcus & Millichap's July housing report. Softer purchase activity should create leverage for buyers in the current climate, but a lack of entry-level homes on the market is hindering sales.

After reaching an all-time high in May, the median home price eased by only 0.2 percent, and the 30-year-fixed-rate mortgage held near 7 percent. The number of existing houses for sale fell for a third straight month, according to the report, remaining about 50 percent under the June average for the prior two decades.

Meanwhile, many high-earning households are choosing to remain in the renter pool as the median monthly mortgage payment grew by almost $70 during the second quarter, extending the gap between renting and buying to roughly $1,290 per month, which is just 3 percent off the record high set in the fourth quarter of 2023.