Home sales fall in August despite the highest supply in over a decade - CNBC
Existing home sales in the U.S. fell 2% in August to 3.98 million units, marking the slowest pace since June 2025. Despite a decade-high supply of homes, high mortgage rates continue to suppress buyer activity while prices remain at record highs.
Why it matters
The housing market data highlights the ongoing affordability crisis and the disconnect between supply levels and buyer purchasing power.
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.
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, home prices are rising, and existing home sales are actually up 1.6% year-to-date through the first eight months of the year."
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