RealtyTrac’s latest report shows that cash sales continued to rise, hitting 40 percent in July from 35 percent in June and 31 percent in July of 2012. RealtyTrac cited the recent uptick in interest rates as the reason for more cash buys, as some non-cash buyers can no longer afford to purchase a home, particularly in high-priced markets.

Cash buyers have an advantage since they have the money to purchase the home outright with having to go through the bank in order to obtain a loan. Those without the cash, however, will have to place a large down payment and keep a near-perfect credit score in order to get approved by the bank.

Institutional investor purchases (sales to non-lenders that purchased at least 10 properties in the past 12 months) accounted for 9% of all residential sales in July, according to RealtyTrac. That percentage of buys was unchanged from the previous month and from 12 months prior.