US home sales slowest in more than a year as mortgage rates and prices climb

Live updates

1. 1d ago

   US home sales hit 14-month low as mortgage rates and prices climb

   Existing home sales in the United States fell 2 percent in August to their slowest pace in over a year. Lawrence Yun, chief economist for the NAR, attributed the decline to mortgage rates that have risen steadily since February. Current 30-year purchase rates have reached 7.155 percent, while refinance rates sit at 7.247 percent. This downturn persists despite housing supply reaching a seven-year high. The market pressure coincides with the US 10-year Treasury yield topping 5 percent for the first time since 2023, driven by inflation fears and surging oil prices.

   Why it matters

   High borrowing costs typically create an inverse relationship with home sales volume. The current trend indicates a K-shaped split in the housing market where inventory is growing but affordability is dropping. Investors are now monitoring an upcoming Federal Reserve rate decision to see if borrowing costs will stabilize.

   What is confirmed

   • Existing home sales declined 2 percent in August to a 14-month low.
   • The 30-year purchase mortgage rate is 7.155 percent and the refinance rate is 7.247 percent.
   • The US 10-year Treasury yield has topped 5 percent for the first time since 2023.
   • Housing inventory has reached a seven-year high.
   • Lawrence Yun of the NAR stated that mortgage rates have been rising since February.

   What to watch next

   • The upcoming US Federal Reserve rate decision
   • Further shifts in crude oil prices affecting inflation expectations
   Sources used for this update (9)

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2. 3d ago

   US Home Sales Drop to 14-Month Low

   United States existing home sales declined 2 percent in August, reaching their slowest pace in more than a year as climbing mortgage rates and property prices weighed on the housing market. Existing home sales slipped to a 14-month low despite housing supply reaching its highest point in over a decade. The downturn occurred alongside accelerated inflation in August, while the broader housing market showed signs of a K-shaped split. Market watchers noted that inventory reached a seven-year high even as sales hit their lowest level of the year.

   Why it matters

   The housing sector faces persistent affordability pressures as elevated borrowing costs sideline prospective buyers. Even with a significant buildup in housing inventory, elevated prices and financing expenses continue to restrict market activity. The National Association of Realtors reported the sales decrease, highlighting the strain on household purchasing decisions.

   What is confirmed

   • U.S. existing home sales dropped 2.0 percent in August.
   • Home sales reached their slowest pace in more than a year.
   • Mortgage rates and home prices climbed during the period.
   • Housing inventory reached a seven-year high.

   Still unconfirmed

   • The market split in August exhibited K-shaped characteristics.

   What to watch next

   • Future mortgage rate adjustments
   • Upcoming National Association of Realtors inventory reports
   Sources used for this update (13)

   1. Yahoo Finance — Home sales dropped last month as mortgage rates reached highest level in over a year
   2. CNBC — Home sales fall in August despite the highest supply in over a decade
   3. KITCO — gold off its lows but largely ignores 2% drop in U.S. existing home sales
   4. Reuters — US existing home sales drop to 14-month low in August
   5. The Guardian — US home sales weaken to slowest pace in more than a year as mortgage rates and prices climb
   6. Inman Real Estate News — Home Sales Show A K-Shaped Housing Market Split In August
   7. Bloomberg.com — US Existing Home Sales Slide to Weakest in More Than a Year
   8. National Association of REALTORS® — NAR Existing-Home Sales Report Shows 2.0% Decrease in August
   9. MarketWatch — Home sales are the lowest they’ve been all year even though inventory is at a 7-year high
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