🕒 Created · Updated

Lawrence Yun reports existing home sales fell to a 3.98 million annual pace in August as mortgage rates hit a 14-month high

Existing home sales in the United States fell 2% in August from July to a seasonally adjusted annual rate of 3.98 million units, according to the National Association of Realtors. This marks the slowest pace of sales in more than a year, and the figure is down 1.2% compared to the same month last year. The decline is attributed to rising mortgage rates, which reached a 14-month high of 6.76% this week. Lawrence Yun, the National Association of Realtors' chief economist, noted that home sales and mortgage rates typically move in opposite directions. While sales have slowed, home prices have continued to rise, with the national median sales price reaching an all-time high for August at $429,100. Despite the sales slump, housing supply is increasing. The number of unsold homes at the end of August was 1.62 million, representing a 4.9-month supply at the current sales pace, the highest level in over a decade. While first-time buyers accounted for 30% of purchases last month, investor and second-home buyer activity declined compared to last year.

Sources

Paywall and unreadable sources