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By Kristin Myers, Editor-in-Chief

What's Happening Today

Sales of new homes dropped 12.6% in July from the month prior, as higher mortgage rates and high home prices continue to weigh on the U.S. housing market. Home sales in July were 29.6% lower than last year, according to the latest report from the Census Bureau released this morning. The decline was more than economists had expected.

Some experts have said we are in a "housing recession," highlighting declining home sales and homebuilding.

But will this mean that, if you're interested in buying a home, you'll snag a deal? Not necessarily. While sales of homes are plummeting, home prices aren't dropping at the same rate. The average price of homes sold in July was nearly $550,000, up more than $80,000 from the average home price last year, according to the Census Bureau.

While mortgage rates have been on the rise, interested homebuyers have been getting a small break lately. The average rate on a 30-year fixed-rate mortgage currently sits at 5.13% according to Freddie Mac, and while that's much higher than the 2.86% that buyers could have scored last year, it's declined from 5.81% in June.

Still, a housing "recession" could bring some good news if you're trying to buy a home. While homeowners can receive high prices for their homes, a slowdown in sales could mean that you, as a buyer, will have more leverage to get homes at a more affordable price.

Join me on Instagram Live later today at 3 p.m. EDT for a discussion with Nasozi Kakembo, founder of xN Studio, on how to prepare to make a down payment as a first-time homebuyer.

- Kristin

Editors' Picks

Want a New Home? Take Your Pick (The Balance)

US Employees Say They're Losing the Upper Hand as Layoffs Mount (Bloomberg)

We're in a 'Housing Recession,' Experts Say. Here's What That Means for Homeowners, Sellers and Buyers (CNBC)

How Are Mortgage Rates Determined? (The Balance)

How the Economy Affects Home Equity (The Balance)

Global Economies Flash Warning of Sharp Slowdown (The Wall Street Journal)

Natural-Gas Prices Surge to Their Highest Level Since 2008; Oil Slips (MarketWatch)

10 Common Stock Investing Mistakes To Avoid (The Balance)

Term of the Day

Freddie Mac

Freddie Mac is a government-owned corporation that buys mortgages and packages them into mortgage-backed securities. Its official title is the Federal Home Loan Mortgage Corporation or "FHLMC."

Freddie Mac is designed to help improve credit flow through the use of mortgages in the U.S. It does this by purchasing mortgage loans from lenders. Lenders (banks) then use the funds received from Freddie to generate new loans to more homebuyers. This creates an ecosystem that benefits both homeowners and the housing market.

One way it helps both lenders and homeowners is by allowing banks to provide 30-year mortgages. Without the financial backing of Freddie Mac, it would be risky and expensive for banks to keep loans on their books for that long.

Off the Charts

New home sales dropped 12.6% in July and 29.6% from a year ago, according to the Census Bureau. That slow pace means that the number of homes on the market would take about 11 months to sell out at the current rate—the longest period of time since 2009.

Later today at 3 p.m. EDT, join us on Instagram Live for a discussion with The Balance Editor-in-Chief Kristin Myers and Nasozi Kakembo, Founder of xN Studio, on how to prepare to make a down payment as a first-time homebuyer. Follow us on Instagram to get updates on The Balance's live events this month!