Key facts
- The US housing market had 4.9 months of inventory in August, the highest level in over 10 years.
- Existing home sales dropped 2% in August.
- The average 30-year fixed mortgage rate rose to 6.76% in the last week.
- The median sale price of existing homes rose to $429,100 in August, up 1.6% year-over-year.
- Analysts expect 2026 to be the weakest year for home sales in over a decade.
The US housing market is experiencing a significant increase in available homes for sale, reaching a 10-year high in August with 4.9 months of inventory. This surge in supply, according to the National Association of Realtors (NAR), is a consequence of declining existing home sales, which fell 2% for the month. High mortgage rates are cited as a primary factor, with the average 30-year fixed rate climbing to 6.76%, the highest since the summer of 2025. Despite the dip in sales activity, home prices have continued to rise, supported by wage growth, with the median sale price reaching $429,100 in August, a 1.6% increase year-over-year. The market has been in a prolonged slowdown due to elevated borrowing costs, which discourage new buyers and keep existing homeowners from selling properties financed at lower rates. Analysts anticipate this trend of slowing sales to continue, with Capital Economics predicting 2026 to be the weakest year for home sales in over a decade and forecasting mortgage rates to remain above 6% for at least the next two years. Zillow's forecast also places the 30-year fixed rate at 6.79% by the end of the year, expecting sales to remain challenged.