U.S. existing-home sales slip in August as mortgage-rate slide offers limited relief
Sales fall 0.2% from July to a 4.0 million seasonally adjusted annual rate; median price climbs 2% year over year to $422,600 amid easing borrowing costs.
Sales of previously occupied U.S. homes declined in August, the National Association of Realtors said Thursday, even as a late-summer slide in mortgage rates improved financing prospects for buyers. The seasonally adjusted annual rate stood at 4.0 million units, down 0.2% from July and the slowest pace since June.
On a year-over-year basis, sales were 1.8% higher than August 2024. The reading exceeded economist expectations, with forecasts centered on roughly 3.96 million annualized sales, according to FactSet.
The national median existing-home price rose 2.0% from a year earlier to $422,600, marking the 26th straight month of annual price gains.
Mortgage rates have been trending lower since late July, bringing borrowing costs to a 10-month low ahead of the Federal Reserve's rate cut last week—the first in a year. Market participants anticipated the move amid growing concern over the U.S. job market.
The rate pullback has given buyers more purchasing power, but affordability remains a hurdle for many would-be buyers after years of rapid price gains. The housing market has faced persistent demand constraints since 2022 when mortgage rates climbed from historic lows, and sales have struggled to gain momentum despite occasional rate declines.
Analysts note that price growth has stayed elevated in many markets even as overall activity remains subdued, underscoring the uneven nature of recovery and the influence of broader economic conditions on housing demand. The Federal Reserve's policy path and inflation data will continue to influence mortgage rates in the coming months, affecting buyers' willingness and ability to close deals.