US home sales slowest in more than a year as mortgage rates and prices climb

Sales of previously occupied U.S. homes declined in August to their slowest pace in over a year, with existing home sales falling 2% from July to an annual rate of 3.98 million units, according to the National Association of Realtors. This marks the third consecutive monthly decline, attributed to rising mortgage rates and home prices. The average 30-year mortgage rate reached 6.76%, its highest in over 14 months, influenced by expectations of higher inflation and surging oil prices following the Iran war. Despite slowing sales, the national median home price increased 1.6% year-over-year to $429,100, an all-time high for August. Inventory levels rose, offering a 4.9-month supply, the highest in over a decade, potentially benefiting buyers who can afford current costs.

Existing home sales in the United States fell to their slowest pace in over a year in August, according to data from the National Association of Realtors. Contract closings decreased by 2 percent to an annualized rate of 3.98 million. This marks one of only two times since autumn 2024 that sales have dropped below 4 million. The slowdown is attributed to potential buyers delaying purchases as they await lower mortgage rates. Despite a cooling of home price growth from pandemic levels, affordability remains a concern, with the median sales price rising 1.6 percent year-over-year to $429,100. Current mortgage rates, at their highest in over a year, are also discouraging sales, particularly for those who previously refinanced at much lower rates.