- Existing home sales fell 2.0% in August to a seasonally adjusted annual rate of 3.98 million, the lowest in over a year.
- The last time sales were below 4.0 million was June 2025, the National Association of Realtors reported.
- High mortgage rates are weighing on buyers, NAR chief economist Lawrence Yun said, noting mortgage rates and home sales move in opposite directions.
- Median existing home price was $429,100 in August, up 1.6% year over year but cooler than July.
- The 30-year fixed mortgage averaged 6.67% in August, rising from 6.54% in July and pressuring affordability.
Sales of previously owned homes in the United States fell more than analysts anticipated in August, dipping to their lowest level in more than a year, industry data showed Thursday.
This came as mortgage interest rates remained high, placing pressure on homebuyers. The rates hit their highest since June 2025 on Thursday too, in a sign that cost worries may not abate quickly.
Existing home sales tumbled by 2.0 percent to a seasonally adjusted annual rate of 3.98 million, said the National Association of Realtors (NAR).
The last time this rate dropped below 4.0 million was in June 2025, the NAR said.
A consensus forecast by Briefing.com had expected a higher figure of 4.03 million.
“Mortgage rates and home sales move in opposite directions, so it’s not surprising to see a mild dip in home buying activity due to high mortgage rates,” NAR chief economist Lawrence Yun said in a statement.
But he added that home prices are still higher than a year ago.
The median price of existing US homes was $429,100 in August across housing types, up 1.6 percent from the year-ago level, NAR data showed.
This was, however, a cooler level than in July.
The drop in home sales came as the popular 30-year fixed-rate mortgage averaged 6.67 percent in August, according to mortgage finance giant Freddie Mac.
In July, the level was 6.54 percent.
The average rate has continued climbing in September, reaching 6.76 percent as of data released Thursday afternoon. This was the highest since June last year.
“Affordability remains a top concern as home prices, mortgage rates, property taxes and insurance are all significantly higher than a few years ago,” said Heather Long, chief economist at the Navy Federal Credit Union.
“Americans are hitting the pause button on homebuying,” she added in a note. “There’s no relief in sight as borrowing costs continue to climb higher.”
