Finance · updated 2h ago · 2 min read
U.S. Existing Home Sales Fall 2.0% in August to 3.98 Million Units
Existing-home sales fell 2% in August to 3.98 million SAAR. Inventories rose to 1.62 million, about 4.9 months' supply.
Affordability improvement attributed to the same index, but interpreted differently.
7 of 9 outlets skipped it: distressed sales were unchanged at 2%.
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Same story, two versions
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TheStreet Pro
“Positively, affordability as measured by the National Association of Realtors’ Housing Affordability Index rose to 104.7 from 103.3 in July”Read the original ↗
Eye On Housing
“This was the highest level since November 2019, increasing 5.9% from a year ago to 1.62 million”Read the original ↗
One outlet spotlights affordability as improving demand conditions; another emphasises inventory and market balance.
Sales slide as rates rise
U.S. existing home sales fell 2.0% in August to a seasonally adjusted annual rate of 3.98 million units, the lowest level since June 2025, as rising mortgage rates continued to suppress demand.
“Home sales fell 2.0% last month to a seasonally adjusted annual rate of 3.98 million units”
Reuters said the popular 30-year fixed rate averaged 6.66% at the end of July and surged to an average of 6.71% last week, the highest in more than a year, according to Freddie Mac data.
The National Association of Realtors reported that existing housing inventory increased 3.2% to 1.62 million units, the highest level since November 2019, and Reuters said supply was up 5.9% from a year ago.
At August’s sales pace, Reuters reported it would take 4.9 months to exhaust the current inventory of existing homes, up from 4.6 in July and a year ago.
Reuters also said the median existing home price rose 1.6% from a year ago to $429,100 and first-time buyers accounted for 30% of sales, up from 29% in July and 28% a year ago.
NAR chief ties demand
Lawrence Yun, the NAR’s chief economist, said, "It's not surprising to see a mild dip in home buying activity due to high mortgage rates," as the market cooled in the Northeast, Midwest and South while sales held steady in the West.
In a separate Reuters passage, Yun added that "Mortgage rates and home sales move in opposite directions," framing the August slowdown as a response to borrowing costs.
Reuters reported that overall sales declined 1.2% on a year-over-year basis in August, while the median number of days on the market for listed properties increased to 31 from 29 in July.
Reuters said distressed sales, including foreclosures, were unchanged at 2%, and it also reported that a 40% share in first-time buyers is needed for a robust housing market.
TheStreet Pro likewise described the August pace as the weakest since June 2025, noting existing-home sales fell 2.0% month-over-month to 3.98 million and inventories jumped 3.2% month-over-month to 1.62 million homes.T
Inventory and pricing outlook
With inventory at 1.62 million units and months’ supply at 4.9, Reuters said the market would take longer to clear, up from 4.6 months in July and a year ago.
“At August's sales pace, it would take 4.9 months to exhaust the current inventory”
Reuters reported that the median existing home price increased 1.6% from a year ago to $429,100, while first-time buyers rose to 30% of sales, up from 29% in July and 28% a year ago.
TheStreet Pro said months’ supply at the current sales pace rose to 4.9, its highest level in over 10 years, and it described the inventory jump as pushing the market toward a higher supply-to-demand balance.T
Realtor | Other also put the months supply at 4.9 and said it was up from 4.6 months both the prior month and prior year to its highest pace since November 2015 (5.1).
Looking ahead, Reuters tied mortgage-rate pressure to broader conditions, saying mortgage rates are tracking long-term U.S. government bond yields that have risen amid concerns over inflation because of the war with Iran, uncertainty over monetary policy and a ballooning government debt load.