A “For Sale” sign outside a home in Crockett, California, US, on Thursday, Sept. 3, 2026.
Davis Paul Morris | Bloomberg | Getty Images
Homebuyers continue to struggle amid higher mortgage rates and lofty home prices.
Sales of previously owned homes fell 2% in August from July to 3.98 million units on a seasonally adjusted, annualized basis, according to the National Association of Realtors. The sales activity marked the slowest pace since June 2025 and was felt hardest in the Northeast and Midwest.
Sales were down 1.2% year over year.
This count is based on closings, so contracts likely signed in June and July, when mortgage rates were higher than they were in the spring. Rates moved sharply higher in the middle of July.
“Mortgage rates and home sales move in opposite directions, so it’s not surprising to see a mild dip in home buying activity due to high mortgage rates,” said Lawrence Yun, chief economist for the Realtors. “Still,…
