Key facts
- Existing home sales fell 2.0% in August to 3.98 million units, the lowest since June 2025.
- The 30-year fixed mortgage rate averaged 6.71% last week, the highest in over a year.
- Existing housing inventory rose 3.2% to 1.62 million units.
- The median existing home price increased 1.6% year-over-year to $429,100.
- First-time buyers accounted for 30% of sales, up from 29% in July.
U.S. existing home sales declined to a 14-month low in August, as elevated mortgage rates continued to dampen buyer demand, the National Association of Realtors reported on Thursday. Sales fell 2.0% from July to a seasonally adjusted annual rate of 3.98 million units, marking the lowest level since June 2025. This figure met economists' expectations.
Contracts signed in June and July likely influenced August's sales, a period when mortgage rates were on an upward trajectory. The popular 30-year fixed mortgage rate averaged 6.66% at the end of July and climbed to 6.71% last week, the highest in over a year, according to Freddie Mac. These rates are influenced by long-term U.S. government bond yields, which have risen due to inflation concerns stemming from the war with Iran, monetary policy uncertainty, and increasing government debt.
Lawrence Yun, the NAR's chief economist, commented that a slight decrease in home buying activity was expected given the high mortgage rates. Sales decreased in the Northeast, Midwest, and South regions, while remaining steady in the West. Year-over-year, overall sales were down 1.2% in August.
Existing housing inventory saw a 3.2% increase to 1.62 million units, the highest since November 2019, and was up 5.9% from the previous year. At the current sales pace, it would take 4.9 months to sell all available homes, an increase from 4.6 months in July. The median existing home price rose 1.6% from a year ago to $429,100. First-time buyers represented 30% of sales, a slight increase from 29% in July. The median time properties spent on the market increased to 31 days from 29 in July, though it was unchanged from the previous year. Distressed sales, including foreclosures, remained stable at 2%.