Existing-home sales in the United States dropped 2% in August to a seasonally adjusted annual rate of 3.98 million, the lowest level since June 2025, as mortgage rates pushed toward 7% amid Middle East-driven bond-market volatility.
The National Association of Realtors (NAR) reported Thursday that August sales slipped from July, roughly matching economists’ forecast of a 2.2% decline, according to a Wall Street Journal survey. The drop extends a downturn that began in July, when sales fell 1.7%, and marks a fourth consecutive year of stagnant housing activity. Home prices continued rising despite the sales slowdown: the national median existing home price climbed 1.6% year-over-year to $429,100.
Mortgage rates have risen since the outbreak of conflict in Iran, with the 30-year fixed rate averaging 6.76% this week, up from 6.23% in April, Freddie Mac reported. The 10-year Treasury yield hit 4.9% Thursday, its highest since 2023, driven by a bond-market selloff tied to inflation concerns and rising government deficits. Homes.com Chief Residential Economist Brad Case said rates are unlikely to ease without a significant reduction in market uncertainty. Unsold inventory rose 3.2% from July to 1.62 million units, as NAR Chief Economist Lawrence Yun pointed to wage growth and job creation as offsetting demand factors.
IAM Member Impact: U.S. members should expect continued softness in discretionary, domestic sale-contingent moves through the near term, with affordability pressure likely to persist as long as Middle East-related market uncertainty keeps mortgage rates elevated.
Source: The Wall Street Journal