OddsFrontUS existing-home sales fall to their slowest pace in more than a year
August transactions declined for a third consecutive month as mortgage rates and record seasonal prices kept many potential buyers out of the market.
August sales retreat
Sales of previously occupied US homes fell 2 percent in August from July to a seasonally adjusted annual rate of 3.98 million, according to National Association of Realtors data reported by the Guardian on September 10. It was the third consecutive monthly decline and the slowest annual pace in more than a year. Sales were also 1.2 percent below their August 2025 level.
The weak monthly result does not mean every measure deteriorated. Sales during the first eight months of 2026 remained 1.6 percent above the comparable 2025 period. The August pace was nevertheless below economists’ expectation of approximately four million transactions and well short of the longer-term norm cited in the report, underscoring how persistently expensive financing has changed housing turnover.
Prices and borrowing costs squeeze buyers
The average 30-year mortgage rate reached 6.76 percent during the reporting week, its highest point in more than 14 months. The Guardian linked the renewed rise to higher long-term bond yields and inflation concerns associated with energy prices. Many August completions would have been agreed earlier, when mortgage rates were generally between 6.43 percent and 6.66 percent.
Prices continued to increase despite fewer transactions. The median existing-home price rose 1.6 percent from a year earlier to $429,100, described as a record for August in data extending to 1999. First-time buyers accounted for 30 percent of purchases, still well below the roughly 40 percent historical share cited by the report. Taxes and insurance costs add further pressure beyond mortgage payments.
More inventory, but not yet an affordable market
There were 1.62 million unsold homes at the end of August, up 3.2 percent from July and 5.9 percent from a year earlier. At the current sales pace that represents 4.9 months of supply, the highest in more than a decade and within the range usually associated with a balanced market. Buyers who can secure financing may therefore gain more choice and negotiating leverage.
Federal policy is explicitly trying to reduce mortgage barriers. A March White House order directed regulators to consider streamlined rules, stronger community-bank participation and measures intended to expand housing-finance liquidity. That policy document does not independently verify August’s industry statistics, and the administration’s claims about causes remain political assertions. The next indicators to watch are mortgage-rate movements, autumn inventory and whether increased supply finally slows price growth.