To view this email as a web page, click here.

By Kristin Myers, Editor-in-Chief

What's Happening Today

The hot housing market might be starting to flame out, as home sales fell 5.4% in June, according to new data out today from the National Association of Realtors (NAR). Home sales are down 14.2% from last year, as higher mortgage rates and surging home prices are causing many buyers to sit on the sidelines.

An index of mortgage applications to buy single-family homes dropped 7% last week according to the Mortgage Bankers Association, as average mortgage rates, despite declining in recent weeks, still remained over 5.5% on a 30-year fixed-rate loan. Refinance applications, which can be very sensitive to changing rates, dropped 4% from the previous week, and are down 80% from a year ago.

But even as fewer buyers purchased homes, the median price of a house soared last month to a new record of $416,000—up from May's record-setting $400,000. Since last year, the NAR says, home prices are up over 13.4%. It was the 124th month of consecutive year-over-year increases, or over a decade since prices fell from the year before. That's the longest-running streak on record.

If you're considering selling your house, you might think there is still some hope to get a higher selling price for your house. But with home sales decreasing, it's far more likely that your house won't sell as quickly, or that a buyer might back out. So if you want to move, you may have to drop your asking price and say goodbye to all-cash offers with no contingencies.

For buyers this could all mean good news: The hot housing market flame might be sputtering, so lower housing prices could be around the corner. But don't expect the flame to burn out completely.

- Kristin

Editors' Picks

44% of US Adults Are Not Financially Ready for Recession (The Balance)

Interest-Rate Pain From Higher Inflation Has Barely Begun (The Wall Street Journal)

Can You Pay Off a Credit Card With Another Credit Card? (The Balance)

40% of U.S. Workers are Considering Quitting Their Jobs Soon—Here's Where They're Going (CNBC)

When Is the Best Time To Open a CD? (The Balance)

Bitcoin Briefly Rises Above $24,000 for First Time in a Month (Bloomberg)

Your Guide to Property Valuation (The Balance)

Term of the Day

Contingency

A homebuying contingency is a clause added to a real estate sales contract that allows the buyer (or, less often, the seller) to walk away from the sale if certain conditions are not met.

While many home sales have some contingencies, it's important to find the right balance of protecting yourself without asking for too much and putting the sale in jeopardy. There are several common ones, but it's not always a good idea to add them to your home contract.

A home sale may be contingent on any number of factors; common ones include the timing of the sale, the condition of the home, the buyer's ability to finance the purchase, or the home's appraisal value.

Off the Charts

With recession fears looming, 44% of U.S. adults said they don't believe they are financially ready if a recession hits, according to a new survey from The Balance. People earning up to $50,000 were more likely to say they weren't at all prepared (36%), compared to those earning over $75,000, of whom 14% said they weren't at all prepared. In addition, around four out of 10 adults expect their finances to get worse over the coming year.