US Existing-Home Sales Sink to Slowest Pace in More Than a Year as Mortgage Rates Rise
Key Facts
US existing-home sales fell 2% month over month in August to a seasonally adjusted annual rate of 3.98 million units. Sales were down 1.2% from August 2025, marking the slowest pace since June 2025.
That was the third consecutive monthly decline, following a 4.06 million rate in July. The National Association of Realtors series measures completed transactions involving existing single-family homes, condominiums and co-ops.
The decline covered most regions: sales fell 4% in the Northeast to an annual rate of 480,000 units, 3.1% in the Midwest to 940,000 and 1.6% in the South to 1.84 million. Sales were unchanged in the West at 720,000 units.
Supply moved in the opposite direction, with inventory rising to 1.62 million homes, up 3.2% from July and 5.9% from August 2025. That represented 4.9 months of supply at the current sales pace, the highest level in more than 10 years, giving buyers able to secure financing more room to negotiate.
The increase in supply did not prevent annual price growth: the median price rose 1.6% to $429,100, the 38th consecutive year-over-year gain. The average 30-year fixed mortgage rate reached 6.76% on September 10, up from 6.71% on September 3.
A recovery in activity will depend on whether greater buyer choice can offset the financing burden. Future readings will show whether accumulating inventory slows price growth and whether a change in mortgage rates brings some deferred demand back to the market.
Latest Updates · 4
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Update: US mortgage rates have exceeded 7% for the first time in 15 months as of September 10, 2026. This surge is driven by heightened inflation concerns stemming from geopolitical tensions, further straining borrowing costs and reinforcing the challenges facing the housing market.
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Update: Additional data revealed that existing home inventory rose to a 4.9-month supply, its highest level in over a decade, suggesting a gradual improvement in buyer options. Despite the decline in sales volume, the median sales price increased by 1.6% to $429,100, highlighting the resilience of property values even under interest rate pressure.
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Update: New data confirms that the average rate on the 30-year fixed mortgage in the US has surpassed the 7% threshold to reach 7.07%, marking its highest level in over a year. This spike reinforces the borrowing cost pressures that drove existing home sales to their annual lows as reported in recent figures (September 10, 2026).
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Update: Detailed data revealed that the median existing-home price rose 1.6% year-over-year to $429,100 in August. This price appreciation occurred even as housing inventory climbed to its highest level in over a decade, suggesting price resilience despite the broader slowdown in sales volume.