Existing-home sales in the United States fell in July to the lowest level in 2 1/2 years and the inventory of unsold homes climbed to a new record.

The report released today by National Association of Realtors (NAR) shows a continued weakening in the housing market, with July’s pace off 11.2% from a year ago.

Home resales fell to a 6.33 million annual rate, a 4.1% decline from June’s revised 6.6 million annual pace. June resales were originally seen at 6.62 million.

The NAR report shows a continued weakening in the housing market, with inventories up sharply while prices are softening, with July’s pace off 11.2% from a year ago.

The NAR said higher interest rates damped sales. The average 30-year rate was 6.76% in July, up from 6.68% in June, according to Freddie Mac.

The level of resales in July was below Wall Street expectations. Analysts predicted a 6.55 million rate of sales of previously owned homes.

The inventory of unsold homes rose 3.2% to a record 3.856 million, a 7.3- month supply at the July sales rate, the highest since April 1993. The past year has seen the sharpest increase in inventories on record,

The median price of a home sold last month was US$230,000. That was up just 0.9% from the same month last year and marked the smallest year-over-year increase since May 1995. The median price is the middle point, where half sell for more and half sell for less.