Despite a summer marked by falling mortgage rates and increased inventory, homebuying activity in Greater Boston has cooled since late spring.

The 2.5% decline followed a 1.3% increase in July, according to the National Association of REALTORS®. 

For the second month in a row, housing affordability in the Bay State rose in August, a positive sign for homebuyers.

Single-family home prices rose 5% from last year to $630,000.

At a time of year when the real estate market typically experiences seasonal declines, this fall is bringing just the opposite.

While the average monthly housing payment in the U.S. fell to its lowest level since the start of the year, it isn’t improving sales, as potential buyers are holding out for lower mortgage rates.

Specifically, prices rose 4.3% annually after growing by 4.7% in June. 

Boston’s rental prices are undeniably high, and a recent report ranked the city among the top five most expensive markets in the country last month.

A new study ranks major U.S. cities by their rent prices and the income needed to afford them, with Boston near the top of the list.

July’s seasonally adjusted annual rate of 739,000 represented a 10.6% jump from June’s upwardly revised rate of 668,000. 

Lower mortgage rates, more available listings and a dip in home prices from June’s record highs drew buyers back into the market last month.

The pace of home sales increased 1.3% from June after months of decreases, the National Association of REALTORS® said.      

Communities in the Northeast and Midwest dominated this year’s rankings, with Massachusetts standing out by placing three towns in the top 10.

July’s Massachusetts housing market experienced a slight increase in closed sales, while median sales prices fell for the first time since early in the year, hinting at a market shift.

Competition in the housing market is expected to reignite as falling mortgage rates breathe new life into buyers, according to Zillow’s latest report. 

The combination of rising inventory and price reductions in Boston and nationwide is creating a more buyer-friendly market.