Existing home sales hit 14-month low
Lawrence Yun, chief economist at the National Association of Realtors, said the direction tracked predictably with rate movement.
“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,” Yun said.
“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 30-year fixed-rate mortgage averaged 6.67% in August, up from 6.54% in July and 6.59% a year earlier, according to Freddie Mac, its highest point of the year.
Because August closings reflect contracts executed in June and July, the data captures the impact of rate spikes that July pending home sales data — which landed at their lowest point of 2026 — had already foreshadowed.
