August home sales slip as mortgage rates hit year-long high
US mortgage rates are inching toward 7%. The 30-year fixed-rate mortgage rose to 6.71% for the week ending September 3, according to Freddie Mac’s Primary Mortgage Market Survey (PMMS) — its highest level since July 31, 2025, when it stood at 6.72%.
Federal Reserve Governor Christopher Waller said he is inclined to support keeping interest rates unchanged at the September 15–16 Federal Open Market Committee (FOMC) meeting, provided that upcoming inflation data continue showing signs of cooling.https://t.co/oaDCJrI575
— Mortgage Professional America Magazine (@MPAMagazineUS) September 7, 2026
Lawrence Yun, chief economist at the National Association of Realtors (NAR) in Washington, DC, framed the challenge plainly when pending home sales posted their steepest monthly drop of 2026: “The highest mortgage rates in nearly a year and the record-high national median home price together are contributing to a tepid housing market that is especially difficult for first-time homebuyers.”
Inventory edged up, with 1.41 million homes for sale nationally — 3% above a year ago — and 26.3% of listings carrying a price cut, up half a percentage point from last year.
Renters absorb what buyers leave behind
The rental market is filling the gap. The typical national rent rose to $1,948, up 2.5% year over year, nearly double the 1.3% annual rate of home value growth. That acceleration is reaccelerating, up from 2.3% the prior month.
High mortgage rates are set to keep the US housing market subdued through 2026, with the Mortgage Bankers Association (MBA) projecting the 30-year fixed rate in the 6.1%–6.3% range for the remainder of the year.
