August Home Sales Decline as Mortgage Rates Reach Yearly High
Home sales in August fell by 2% compared to July, reaching a seasonally adjusted annual rate of 3.98 million homes, according to the National Association of Realtors (NAR). This marks the slowest pace since over a year ago and is down from last August's level. Mortgage rates remained high throughout August between 6.6% and 6.7%, with recent peaks reaching 6.71%, deterring potential buyers. The NAR’s chief economist, Lawrence Yun, noted that rising mortgage rates have been negatively impacting home sales since February. The bond market sell-off and increasing oil prices contributed to further rate hikes in the past week. While overall activity declined across most regions of the U.S., only the West saw flat performance. Prices continued to rise despite low buyer demand; the median home price reached $429,100 in August, up 1.6% from a year ago. Despite current challenges, total sales for this year through August are still ahead by 1.6% compared to last year's figures.
