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US existing home sales slip below 4 million pace in August
Contract closings fell 2.0% to an annualized 3.98 million as mortgage rates remained at their highest levels in more than a year.
US existing home sales slowed in August to the weakest pace in more than a year, as buyers held off while mortgage rates offered limited relief. Data released by the National Association of Realtors showed contract closings slipped 2.0% to an annualized rate of 3.98 million.
The report said August sales marked one of only two times since the autumn of 2024 that closings have dipped below the 4 million level. It also pointed to cooling home price growth from the pandemic-era pace, while affordability concerns continued to weigh on demand.
Home prices rose 1.6% year over year to a median of US$429,100, extending a streak of annual increases dating back to mid-2023, according to the NAR data. Mortgage rates were described as the highest in more than a year, with the disincentive particularly strong for homeowners who refinanced at rates less than half current levels.
In a statement, NAR Chief Economist Lawrence Yun said mortgage rates and home sales tend to move in opposite directions, which helps explain the mild dip in buying activity. The article also cited Apollo Global Management data indicating that less than a quarter of outstanding mortgages have rates above 6.0%.