US Existing Home Sales Drop to 14-Month Low in August

Existing home sales in the United States fell 2% in August to a seasonally adjusted annual rate of 3.98 million units, marking the third consecutive monthly decline. This performance represents the slowest annual pace since June 2025 and falls below the 4 million unit threshold anticipated by market analysts. Year-over-year, sales are down 1.2%, reflecting a sustained contraction in housing market activity.

The downturn is primarily driven by elevated borrowing costs, with the average 30-year mortgage rate reaching 6.76%, the highest level in over 14 months. These rates have been pressured by rising 10-year Treasury yields, which have climbed in response to inflationary expectations linked to the ongoing conflict between the US and Iran. Consequently, the housing sector remains significantly below the historical norm of 5.2 million annual sales.

Despite the decline in transaction volume, median home price rose 1.6% year-over-year to $429,100, marking 38 consecutive months of price appreciation. While inventory increased to 1.62 million units—a 4.9-month supply—the market remains constrained by a chronic shortage of available properties. This combination of high prices and restricted supply continues to limit affordability, particularly for first-time buyers who currently represent only 30% of the market.