Home sales declined for the seventh month in a row in August as higher mortgage rates and stubbornly high prices pushed prospective buyers out of the market.
Sales of existing homes – which include single-family homes, townhomes, condominiums and co-ops – were down nearly 19.9% from a year ago and down 0.4% from July.
Home prices continued to climb during the month, although it was the lowest year-over-year increase since June 2020. The median home price was $389,500 in August, up 7.7% from a year ago, according to a report from the National Association of Realtors. That’s down from the record high of $413,800 in June. The price increase marks more than a decade of year-over-year monthly gains.
“The housing sector is the most sensitive to and experiences the most immediate impacts from the Federal Reserve’s interest rate policy changes,” said Lawrence Yun, NAR’s chief economist. “The softness in home sales reflects this year’s escalating mortgage rates.
This story is developing and will be updated.