US existing home sales fell 2% in August to an annual rate of 3.98 million units, their lowest level since June 2025, as higher mortgage rates continued to weaken demand.
The National Association of Realtors said sales also declined 1.2% from a year earlier. The average 30 year mortgage rate reached 6.71% last week, its highest level in more than a year.
Housing inventory rose 3.2% to 1.62 million homes, the highest level since November 2019. At the current sales pace, available homes would last about 4.9 months.
The median home price increased 1.6% from a year earlier to $429,100. First time buyers accounted for 30% of sales, while homes remained on the market for a median of 31 days.
NAR chief economist Lawrence Yun said the decline in sales was not surprising given elevated mortgage rates.
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