Closed sales of previously owned homes rose 1.3% in July compared with June to a seasonally adjusted, annualized rate of 3.95 million units, according to the National Association of Realtors. That was the first gain in five months.

Sales were 2.5% lower compared with the same time last year.

Sales saw the biggest gains in the Northeast and were flat in the Midwest. Prices also rose the most in the Northeast.

“Despite the modest gain, home sales are still sluggish,” said Lawrence Yun, NAR’s chief economist, in a release. “But consumers are definitely seeing more choices, and affordability is improving due to lower interest rates.”

These sales are based on contracts that were likely signed in May and June, when mortgage rates were well over 7% on the popular 30-year fixed loan. Rates began dropping in July and are now hovering around 6.5%.

All-cash offers made up 27% of July sales, up from 26% the year before and far higher than the historical norm.

The supply of homes for sale continued to move higher in July. At the end of the month, there were 1.33 million homes on the market, an increase of 0.8% from June and 19.8% higher than in July 2023. At the current sales pace, that represents a four-month supply, slightly lower than it was in June.

The increase in supply did not, however, help to cool home prices. The median price of an existing home sold in July was $442,600, an increase of 4.2% year-over-year.

First-time buyers made up 29% of sales in July, unchanged from June but down from 30% in July 2023. Historically, these buyers make up closer to 40% of home sales, but affordability has been hit hard in the last two years due to fast-rising home prices and higher mortgage rates.

With rates now slightly lower, demand is starting to pick up. A separate report from Redfin, a real estate brokerage, found requests for tours and other buying services from Redfin agents rose 4% over the last week to its highest level in two months.

Philadelphia Federal Reserve President Patrick Harker on Thursday provided a strong endorsement to an interest rate cut on the way September.

Speaking to CNBC from the Fed’s annual retreat in Jackson Hole, Wyoming, Harker gave the most direct statement yet from a central bank official that monetary policy easing is almost a certainty when officials meeting again in less than a month.

The position comes a day after minutes from the last Fed policy meeting gave a solid indication of a cut ahead, as officials gain more confidence in where inflation is headed and look to head off any potential weakness in the labor market.

“I think it means this September we need to start a process of moving rates down,” Harker told CNBC’s Steve Liesman during a “Squawk on the Street” interview. Harker said the Fed should ease “methodically and signal well in advance.”

With markets pricing in a 100% certainty of a quarter percentage point, or 25 basis point, cut, and about a 1-in-4 chance of a 50 basis point reduction, Harker said it’s still a toss-up in his mind.

“Right now, I’m not in the camp of 25 or 50. I need to see a couple more weeks of data,” he said.

The Fed has held its benchmark overnight borrowing rate in a range between 5.25%-5.5% since July 2023 as it tackles a lingering inflation problem. Markets briefly rebelled after the July Fed meeting when officials signaled they still had not seen enough evidence to start bringing down rates.

However, since then policymakers have acknowledged that it soon will be appropriate to ease. Harker said policy will be made independently of political concerns as the presidential election looms in the background.

“I am very proud of being at the Fed, where we are proud technocrats,” he said. “That’s our job. Our job is to look at the data and respond appropriately. When I look at the data as a proud technocrat, it’s time to start bringing rates down.”

Harker does not get a vote this year on the rate-setting Federal Open Market Committee but still has input at meetings. Another nonvoter, Kansas City Fed President Jeffrey Schmid, also spoke to CNBC on Thursday, offering a less direct take on the future of policy. Still, he leaned toward a cut ahead.

Schmid noted the rising unemployment rate as a factor in where things are going. A severe supply-demand mismatch in the labor market had helped fuel the run in inflation, pushing wages up and driving inflation expectations. In recent months, though, jobs indicators have cooled and the unemployment rate has climbed slowly but steadily.

“Having the labor market cool some is helping, but there’s work to do,” Schmid said. “I really do believe you’ve got to start looking at it a little bit harder relative to where this 3.5% [unemployment] number was and where it is today in the low 4s.”

However, Schmid said he believes banks have held up well under the high-rate environment and said he does not believe monetary policy is “over-restrictive.”

Harker next votes in 2026, while Schmid will get a vote next year.

Peloton on Thursday said it will start charging new subscribers a one-time $95 activation fee if they bought their hardware on the secondary market as more consumers snag lightly used equipment for a fraction of the typical retail price.

The used equipment activation fee for subscribers in the U.S. and Canada comes as Peloton starts to see a meaningful increase in new members who bought used Bikes or Treads from peer-to-peer markets such as Facebook Marketplace. 

During its fiscal fourth quarter, which ended June 30, Peloton said it saw a “steady stream of paid connected fitness subscribers” who bought hardware on the secondary market. The company said the segment grew 16% year over year.

“We believe a meaningful share of these subscribers are incremental, and they exhibit lower net churn rates than rental subscribers,” the company said in a letter to shareholders. 

“It’s also worth highlighting that this activation fee will be a source of incremental revenue and gross profit for us, helping to support our investments in improving the fitness experience for our members,” interim co-CEO Christopher Bruzzo later added on a call with analysts. 

While plenty of Peloton subscribers are avid users of the home workout machines, some have likened them to glorified clothes racks because so many people stop using the equipment. Those people paid Peloton for that hardware originally, but importantly, many of them have canceled their monthly subscription, which is how Peloton makes the bulk of its money. 

The ability to attract new, budget-conscious members from the secondary market who are willing to pay for a monthly subscription is a unique opportunity for Peloton to grow revenue without any upfront cost, on top of the revenue from the original sale. 

Ari Kimmelfeld — whose startup Trade My Stuff, formerly known as Trade My Spin, sells used Peloton equipment — estimates there are around a million Bikes collecting dust in homes around the world that could be a source of new revenue for the company. 

He told CNBC he previously met with Peloton executives to discuss ways to collaborate, because every time he sells a used piece of equipment, it could lead to more than $500 in new revenue per year for Peloton. With the new used equipment activation fee, that number could grow to more than $600 for the first year. 

“We save the customer a lot more than $95,” Kimmelfeld told CNBC on Thursday after the new activation fee was announced. “I don’t think it’ll stop or slow down people from buying secondary equipment … because you can get a bike delivered faster and cheaper on the secondary market, even with the $95, let’s call it a tax, from Peloton.” 

Trade My Stuff sells first-generation Bikes for $499, compared with $1,445 new. It offers the Bike+ for $1,199, compared with $2,495 new. It also sells used Treads for $1,999, compared with $2,995 new. 

Since launching his business, Kimmelfeld has worked with people looking to sell their used Peloton equipment and has since sold a “few thousand” Bikes. In 14 cities around the country, including Los Angeles, Denver and New York City, the company offers same- or next-day delivery. Outside of those locales, it provides delivery within three to five days. That compares with a new Peloton purchase, which can take significantly longer to deliver. 

The used equipment activation fee is designed to ensure that new members “receive the same high-quality onboarding experience Peloton is known for,” the company said. Bruzzo said that those who buy a used Bike or Bike+ have access to a virtual custom fitting ahead of their first ride, as well as a history summary that shows how many rides those bikes had before they were resold. 

“We’re also offering these new members discounts on accessories such as bike shoes, bike mats and spare parts,” said Bruzzo. “We’ll continue to lean into this important channel and find additional ways to improve the new member experience, for example, providing early education about the broad range of fitness modalities that we offer and the many series and programs our instructors provide to new members.”

The future of Paramount Global is still uncertain.

Paramount’s special committee on Wednesday said it would extend by 15 days an agreed-upon “go shop” period of its merger agreement with Skydance as it reviews a competing offer from Edgar Bronfman Jr.

Bronfman initially offered $4.3 billion late Monday for Shari Redstone’s National Amusements, the controlling shareholder of Paramount, according to a person familiar with the bid. As part of the bid, Bronfman would acquire a minority stake in Paramount. However, after placing the bid, Bronfman raised more funds to support a higher bid, said the person, who asked to remain anonymous to speak about specifics of the offer.

On Wednesday, Bronfman upped the bid and submitted a revised offer of $6 billion, the person said.

The offer looks to supersede Paramount’s merger agreement with Skydance Media, which came in early July and capped off a monthslong negotiation process. The agreement included a 45-day “go shop” period during which Paramount could solicit other offers.

A representative for Bronfman declined to comment.

The special committee on Wednesday confirmed “the receipt of an acquisition proposal from Edgar Bronfman, Jr., on behalf of a consortium of investors.”

“As a result, the ‘go shop’ period is extended for the Bronfman Consortium until September 5, 2024, pursuant to the transaction agreement to which the Company remains subject,” the committee said in a statement. “There can be no assurance this process will result in a Superior Proposal. The Company does not intend to disclose further developments unless and until it determines such disclosure is appropriate or is otherwise required.”

The committee added that during the initial “go shop” period it contacted more than 50 third parties to gauge potential acquisition interest. The go-shop period will still expire before midnight Wednesday for all other parties, the committee said.

The Skydance buying consortium, which also includes private equity firms RedBird Capital Partners and KKR, agreed to invest more than $8 billion into Paramount and to acquire National Amusements. The deal gives National Amusements an enterprise value of $2.4 billion, including $1.75 billion in equity.

As part of the Skydance deal, Paramount’s class A shareholders would receive $23 apiece in cash or stock, and class B shareholders would receive $15 per share, equating to a cash consideration totaling $4.5 billion available to public shareholders. Skydance also agreed to inject $1.5 billion of capital into Paramount’s balance sheet.

National Amusements owns 77% of Paramount’s class A shares, and 5% of class B shares. If the Skydance transaction were to close, it would wholly own class A Paramount shares, and 69% of the outstanding class B shares.

Bronfman’s initial bid proposed buying National Amusements in an equity deal valued at $1.75 billion. That offer included a $1.5 billion investment into Paramount’s balance sheet, like the Skydance deal, and also included covering the $400 million breakup fee that Paramount would owe Skydance if it walked away from the deal, according to the person familiar.

The sweetened bid made on Wednesday now includes $1.7 billion for a tender offer that would give non-Redstone, nonvoting Paramount shareholders the option to receive $16 a share, the person added.

Bronfman previously ran Warner Music and liquor company Seagram and has also served as executive chairman of Fubo TV since 2020. Details of his bid were first reported by The Wall Street Journal.

The merger agreement between Paramount and Skydance has drawn scrutiny from shareholders. Money manager Mario Gabelli reportedly filed a lawsuit looking for Paramount to turn over its books related to the Skydance deal — a possible first step toward a lawsuit challenging the deal. Investor Scott Baker reportedly sued to block the deal, arguing it would cost shareholders $1.65 billion.

Minnesota Gov. Tim Walz accepted the Democratic vice presidential nomination at the Democratic National Convention on Wednesday night.

In his speech, Walz credited a particular source of support for helping to get his family to where they are today — Social Security survivor benefits.

His father died of lung cancer when Walz was 19, leaving a “mountain of medical debt,” Walz said. Social Security benefits allowed his family, including his mother and younger brother, to “live with dignity,” he recently posted on social media.

“Thank God for Social Security survivor benefits,” Walz said during his Wednesday night speech.

‘Lots of kids … do not claim their survivor benefits’

About 3.7 million children receive Social Security benefits, according to recent Social Security Administration data.

Children can receive benefits if they are unmarried and younger than 18; between 18 and 19 and are full-time students in grades 12 or below; and age 18 or older with a disability that started before age 22.

If a working parent dies, 98 out of 100 children in the U.S. could get Social Security benefits, the agency estimates. The monthly checks are based on the earnings of a deceased parent.

The average monthly surviving child benefit is $1,103 as of July, with more than 2 million children receiving those checks, according to the Social Security Administration.

“Lots of kids all across the country do not claim their survivor benefits,” Social Security Commissioner Martin O’Malley said at a National Academy of Social Insurance event in Washington, D.C., in June.

Data suggests as many as half of orphaned children in the U.S. are not receiving the Social Security benefits for which they are eligible, according to Joyal Mulheron, founder and executive director at Evermore, a nonpartisan nonprofit focused on improving the lives of bereaved people.

“That’s … children potentially who could be lifted out of poverty as a result of accessing this benefit,” Mulheron said.

The Social Security Administration is working to figure out who those families are and to develop more targeted approaches to reach them, O’Malley said at the NASI event in June.

To date, those efforts have included sending information letters to households with potential applicants, launching a new web page on survivor benefits and working with states and communities to help raise awareness of these benefits, according to the agency. In Utah, for example, a check box has been added to death reporting forms to indicate when the deceased has a minor child.

More than half of children who receive Social Security checks have had a parent who worked and paid taxes into the program die, according to the Social Security Administration. Those children may receive up to 75% of the deceased parent’s basic benefit.

To qualify for survivors’ benefits, children do not have to live with a parent or receive financial support from them, according to the Social Security Administration. Additionally, the child’s parents do not have to have been married.

In some situations, surviving parents who care for children under 16 may also be eligible for benefits.

There are other ways in which children may qualify for benefits.

For example, they may also be able to receive benefits if they have a living parent who is retired or disabled and who is eligible for Social Security. Those children may receive up to half of their parent’s full benefits.

The amount of benefits children receive may be adjusted based on a maximum family benefit, a limit on how much a family may receive per month based on a worker’s earnings record. The formula for that varies based on whether the payments are related to disabled or retirement and survivor benefits.

When someone dies, a funeral director may send a family to Social Security, particularly since there may be a $255 lump sum death benefit available, said Jim Blair, vice president of Premier Social Security Consulting and a former Social Security administrator.

At that time, widows and widowers may be informed of the benefits available to them, as well as their children, he said. Still, it’s possible some situations may fall through the cracks.

Children may not access the benefits for which they are eligible if they switch to a different guardian, for example, who many not be able to answer all of Social Security’s questions, Mulheron said. Families may also fail to access benefits due to immigration issues, missed deadlines or administrative errors with applications, she said.

It could help for the Social Security Administration to make applications for children’s benefits more accessible online, Mulheron said.

“You don’t want to see anybody lose out on any benefits, because that’s what the benefit is there for,” Blair said.

“If you think you might even have an inkling that there might be something payable, call and ask,” he said.

The Social Security Administration can be reached at 1-800-772-1213. When applying for children’s benefits, the agency may require you to provide a child’s birth certificate, proof of birth or adoption, the parent’s and child’s Social Security numbers, and when relevant, a parent’s death certificate or medical evidence of a child’s disability.