US Existing Home Sales Fall, Mortgage Rates Remain a Weigh

Sales of existing homes in the United States fell in August 2026, in line with market expectations. Existing home sales fell 2.0% compared to the previous month, to 3.98 million units on a seasonally adjusted annual basis.

This decline continued the decline in the previous month, when existing home sales fell 1.7%. This data indicates that the US property market continues to face pressure from high borrowing costs and mortgage rates.

By region, home sales fell 4.0% in the Northeast, 3.1% in the Midwest, and 1.6% in the South. Meanwhile, sales in the West remained relatively unchanged compared to the previous month.

On the supply side, total housing inventory increased 3.2% to 1.62 million units. However, home prices remained high, with the median price for all home types at US$429,100, up 1.6% compared to the same period last year.

NAR Chief Economist Lawrence Yun said mortgage rates and home sales typically move inversely. Therefore, the weakening home buying activity is not surprising amidst persistently high mortgage rates.

Newsmaker Analysis: The decline in US existing home sales data indicates that the property sector remains one of the most sensitive sectors of the economy to rising yields and borrowing costs. Surging energy prices, the supply of corporate debt, and high long-term yields contribute to keeping mortgage rates expensive. For the market, this data could signal a slowdown in the housing sector, but it is not strong enough to alter the Fed's expectations if energy inflation pressures remain high. (asd)