Pending home sales slowed to their weakest annualized pace in over a year last month, as prospective buyers held off on purchases amid elevated mortgage rates.
The National Association of Realtors reported on Thursday that contract closings fell 2 percent to a seasonally adjusted annual rate of 3.98 million in August, marking one of only two months since late 2024 that sales dipped below 4 million.
The soft data underscores a housing market still searching for a catalyst. Although annual price growth has moderated from the double-digit surges of the pandemic era, affordability remains a significant barrier for buyers.
The median sales price climbed 1.6 percent year-over-year to US$429,100, extending a run of annual gains that began in mid-2023.
Mortgage rates remain at their highest level in more than a year, discouraging moves, particularly for homeowners who refinanced years ago at rates well below current levels. According to a recent Apollo Global Management housing report, fewer than a quarter of outstanding mortgages carry rates above 6 percent.
“Mortgage rates and home sales tend to move in opposite directions, so a mild pullback in buying activity amid elevated rates is not surprising,” NAR Chief Economist Lawrence Yun said in a statement.
