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Existing-home sales grew 2.5 percent during July, according to data from the National Association of Retailers. Following a steady decrease of sales from late 2018 into early 2019, NAFCU Chief Economist and Vice President of Research Curt Long attributed the growth to lower mortgage rates.

July's uptick follows a string of months that saw a decrease in home sales, including a decrease of 1.7 percent the previous month.

"Overall inventory declined slightly in July and remains tight, but the real problems have been in the starter home category," Long said in a Macro Data Flash report. "Limited availability has led to rapid appreciation, pricing out many prospective first-time buyers." 

Sales in the West saw the biggest increase at 8.3 percent from the previous month. The Midwest and South saw increases of 1.6 percent and 1.8 percent, respectively; the Northeast was the only region that saw a decrease with sales falling 2.9 percent.

The median existing home price declined from $285,300 in June to $280,800 in July (not seasonally adjusted) – a price increase of 4.3 percent from last year.

Long said that supply constraints will keep sales growth low in the coming months, but low rates and wage growth "should keep housing demand stable as long as the economy can avoid a recession."