NAR: High Mortgage Rates Weighing on Existing-Home Sales

Existing-home sales fell by 2% month-over-month and 1.2% year-over-year, according to the National Association of REALTORS Existing-Home Sales report, which provides real estate agents, homebuyers, and sellers with data on the level of home sales, price, and inventory.

NAR said that month-over-month sales held steady in the West and fell in the Northeast, Midwest and South. Year-over-year sales were unchanged in the South and declined in the Northeast, Midwest and West.

“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 NAR Chief Economist Lawrence Yun. “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. Homebuying demand, despite higher interest rates, is no doubt being supported by rising wages, which grew 3.1% in August, along with 643,000 net new jobs added since the start of the year. Job creation and wage growth typically drive housing demand.”

“The number of months it would take to exhaust the total inventory at the current sales pace has grown to 4.9 months’ supply—its highest level in over 10 years. The ample supply of homes for sale on the market is giving homebuyers better opportunities to negotiate,” Yun added.

Here’s the national snapshot:

Total Existing-Home Sales for August

2% decrease in existing-home sales¹ month-over-month.
1.2% decrease in existing-home sales year-over-year to a seasonally adjusted annual rate of 3.98 million. The last time sales activity fell below 4.0 million was in June 2025.

Inventory in August

1.62 million units: Total housing inventory, up 3.2% from July and up 5.9% from August 2025. This was the first time since November 2019 that inventory exceeded 1.6 million units.
4.9-month supply of unsold inventory, up from 4.6 months in July and 4.6 months in August 2025.

Median Sales Price in August

$429,100: Median existing-home price³ for all housing types
1.6% increase from one year ago ($422,400)—the 38th consecutive month of year-over-year price increases.

Housing Affordability in August

The Housing Affordability Index registered at 104.7, up from 101.2 a year ago. Year-over-year, affordability improved across all regions.

West +5.9%
Northeast +0.5%
Midwest +1.7%
South +4.5%

Single-Family and Condo/Co-op Sales

Single-Family Homes in August

1.9% decrease in sales month-over-month to a seasonally adjusted annual rate of 3.62 million, down 1.1% from August 2025.
$434,800: Median home price, up 1.7% from last year.

Condominiums and Co-ops in August

2.7% decrease in sales month-over-month to a seasonally adjusted annual rate of 360,000
Down 2.7% from last year.
$371,600: Median price, up 1.5% from August 2025.

Regional Snapshot for Existing-Home Sales

Northeast

4% decrease in sales month-over-month to an annual rate of 480,000
Down 2% from August 2025
$556,900: Median price, up 4.3% from August 2025

Midwest

3.1% decrease in sales month-over-month to an annual rate of 940,000
Down 2.1% year-over-year
$340,400: Median price, up 3.3% from August 2025

South

1.6% decrease in sales month-over-month to an annual rate of 1.84 million
Unchanged from August 2025
$366,500: Median price, up 0.7% from August 2025

West

Unchanged in sales month-over-month at an annual rate of 720,000
Down 2.7% year-over-year
$619,100: Median price, down 0.2% from August 2025

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