The starter home is making a comeback as the housing market thaws for first-time buyers

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• Starter home sales in July reached their highest since October 2022, a report from Redfin shows.
• First-time home buyers are taking advantage of lower mortgage rates.

The housing market has remained in low gear this year, but there's one area of the market that's mounting a comeback.

Pending sales of starter homes — houses priced in roughly the bottom third of home values — rose 10.2% year-over-year in July to the highest level since October 2022...