The National Association of Realtors (NAR) announced on Wednesday that the U.S. existing home sales jumped 2.5 percent m-o-m to a seasonally adjusted rate of 5.42 million in July from a revised 5.29 million in June (originally 5.27 million).

Economists had forecast home resales increasing to a 5.39 million-unit pace last month.

In y-o-y terms, existing-home sales rose 0.6 percent in July.

According to the report, single-family home sales stood at a seasonally adjusted annual rate of 4.84 million in July, up from 4.71 million in June and up 1.0 percent from a year ago. The median existing single-family home price was $284,000 in July 2019, an increase of 4.5 percent from July 2018. Meanwhile, existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 580,000 units in July, unchanged from the prior month and down 3.3 percent from a year ago. The median existing condo price was $254,300 in July, which is up 2.5 percent from a year ago.

The NAR’s chief economist Lawrence Yun noted that falling mortgage rates were improving housing affordability and nudging buyers into the market. However, he added that the supply of affordable housing is severely low. “The shortage of lower-priced homes have markedly pushed up home prices,” he said.