U.S. housing activity showed tentative signs of stabilization in July. Sales of previously owned homes rose 2% from June to a seasonally adjusted annual rate of 4.01 million, according to the National Association of Realtors. The national median price edged up 0.2% year-on-year to $422,400, the smallest annual increase in more than two years, as inventory climbed to 1.55 million units—equivalent to 4.6 months of supply. Realtors said a pullback in the average 30-year mortgage rate to roughly 6.6% helped offset affordability constraints that have weighed on demand since 2022. Forward-looking indicators were mixed. Commerce Department figures show single-family housing starts increased 2.8% to a 939,000 annual pace, while construction of buildings with at least five units jumped 11.6% to 470,000. Mortgage Bankers Association data, however, recorded a 1.4% weekly drop in purchase and refinancing applications after a sharp gain the prior week, suggesting buyers remain sensitive to rate fluctuations. Broader economic momentum softened only marginally. The Conference Board’s Leading Economic Index slipped 0.1% in July after a 0.3% decline in June, matching economists’ expectations. Although the composite gauge has fallen for 19 of the past 20 months, the smaller decline, alongside firmer housing readings, signals the sector may be nearing a floor as the Federal Reserve eyes further interest-rate cuts later this year.