Existing-home sales fall 2% in August, hitting lowest level in over a year

Existing-home sales fell 2% in August and stood at a seasonally adjusted annual rate of 3.98 million units, the lowest level since June 2025, according to a report released Thursday by the National Association of Realtors (NAR). 

Mortgage rates at 6.67% and fewer buyers with financing

The average 30-year mortgage rate stood at 6.67% in August, up from 6.54% in July, according to data from Freddie Mac. 

The rise in rates, driven by tension in energy markets following the conflict with the Iranian regime and the partial closure of the Strait of Hormuz, has driven up the cost of financing just when more families needed to take out loans to buy a home.

Lawrence Yun, chief economist at the NAR, summed it up clearly: "Mortgage rates and home sales move in opposite directions, so it's not surprising to see a mild dip in home buying activity due to high mortgage rates."

Median price rising and inventory at more than a decade-high

The median price of homes sold in August was $429,100, up 1.6% from a year ago, the NAR reported. The data points to a market where prices continue to climb, albeit at a slower rate than in previous months.

The report also showed that total housing inventory at the end of August reached 1.62 million units, up 3.2% from July and representing a 4.9-month supply at the current sales pace — the highest level in more than ten years, according to the NAR.

Yun noted that this “ample” inventory gives buyers more negotiating power, even as elevated mortgage rates constrain affordability for many households.