Home sales fell for the seventh straight month in August as higher mortgage rates and stubbornly high prices pushed would-be buyers out of the market.
Existing home sales, which include single-family homes, townhomes, condominiums and cooperatives, fell nearly 19.9% from a year earlier and 0.4% from July.
Home prices continued to rise during the month, although it was the smallest 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 a 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 and experiences the most immediate impacts from changes in the Federal Reserve’s interest rate policy,” said Lawrence Yun, chief economist at NAR. “The weakness in home sales reflects the escalation in mortgage rates this year.
This story is developing and will be updated.