US Home Sales Drop to a 14-Month Low Amid High Borrowing Costs
Home sales in the United States fell by 2% month-over-month in August, reaching their lowest level since June 2025. The National Association of Realtors reported that the seasonally adjusted annual rate dropped to 3.98 million homes sold due to high mortgage rates and home prices. Rising oil prices from renewed US-Iranian tensions and concerns over public debt have pushed up bond yields, which in turn increase mortgage costs. The median existing home price rose by 1.6% year-over-year to $429,100, despite many households being unable to afford homes above $300,000. While high borrowing costs are dampening buyer activity and discouraging sellers from listing their properties, inventory levels have increased for the first time in years, offering more negotiation power to buyers. Despite these challenges, home prices continue to rise, with existing sales up 1.6% year-to-date through August. Analysts suggest that a drop in mortgage rates could unlock additional housing supply and potentially stabilize or improve market conditions.
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Topics: Home Sales Inflation Mortgage Rates Oil Prices