New data appears to support the predictions of a longer-term drag on the first-mortgage market.

Even as new listings decline, inventory is on the rise because homes are taking longer to sell.

According to CUNA Mutual Group's "Credit Union Trends Report," existing home sales also spiked 20.7% in June.

The sales results are further evidence that housing is proving to be a bright spot in the economy.

Cheaper mortgages help current borrowers, but prices of homes are rising making it difficult to afford.

For many, prices have risen much faster than incomes, pushing homeownership out of reach for a new generation of hopeful buyers.

This year's drop in mortgage rates and the strong job market have only added to competition for entry-level homes, driving up prices and slowing sales.

"I'm seeing a lot of people who before were content to stay put and now are saying, 'It's not a bad time to upgrade.'"