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Existing home sales fall 2% in August as mortgage rates rise
The National Association of Realtors reported the 30-year benchmark mortgage rate averaged 6.76% this week, the highest level in more than 14 months.
Existing US home sales weakened in August to their slowest annual pace in more than a year as higher mortgage rates and rising home prices weighed on buyers, according to the National Association of Realtors.
The NAR said existing home sales fell 2% from July to a seasonally adjusted annual rate of 3.98 million units, marking the third straight monthly decline. Sales were also down 1.2% versus August 2025.
HousingWire reports the latest sales figure was just below the 4 million pace economists expected, with the market largely constrained by borrowing costs. NAR chief economist Lawrence Yun said mortgage rates have moved higher since February, and rates tend to rise alongside long term bond yields used in pricing home loans.
The report said the average rate on the benchmark 30-year mortgage hit 6.76% this week, its highest level in more than 14 months, after briefly dipping below 6% before the US Iran war began in late February. Even with the slowdown, the US median sales price increased 1.6% from a year earlier to $429,100, an all time high.