Existing home sales drop to 14-month low in August

U.S. existing home sales fell to a 14-month low in August as higher mortgage rates continued to suppress demand. Sales dropped 2.0% last month to a seasonally adjusted annual rate of 3.98 million units, the lowest level since June 2025, according to the National Association of Realtors. Economists surveyed by Reuters had expected the same pace at 3.98 million. Last month’s closings likely reflected contracts signed in June and July. The popular 30-year fixed rate averaged 6.66% at the end of July and rose to 6.71% last week, the highest in more than a year. Inventory increased 3.2% to 1.62 million units, while the median price rose to $429,100.