Second-hand housing sales in the US slowed to their lowest level in more than a year in August as potential buyers waited for mortgage interest rates to fall. According to data released by the National Association of Realtors of America on Thursday, second-hand housing sales in August fell at an annual rate of 2% to 3.98 million units. Since the fall of 2024, monthly equivalent annual sales have fallen below 4 million units only twice; August was one of them. This disappointing set of data reflects the urgent need for new drivers in the real estate market. Compared to the double-digit annual increase during the pandemic, the pace of rising housing prices has slowed, but affordability issues are still an important obstacle faced by buyers. The median second-hand housing sales price rose 1.6% from the same period last year to 429,100 US dollars, continuing the year-on-year upward trend since mid-2023. NAR chief economist Lawrence Yun said in a statement: “Mortgage interest rates are the opposite of the trend in second-hand housing sales, so it is not surprising that high mortgage interest rates have led to a slight decline in home buying activity.” However, in a conference call with reporters, Yun said that in the face of rising mortgage interest rates, home purchases “have not collapsed,” and pointed out that employment and wage growth have helped support demand. However, he said the mortgage rate could soon hit 7%.

Second-hand housing sales in the US slowed to their lowest level in more than a year in August as potential buyers waited for mortgage interest rates to fall. According to data released by the National Association of Realtors of America on Thursday, second-hand housing sales in August fell at an annual rate of 2% to 3.98 million units. Since the fall of 2024, monthly equivalent annual sales have fallen below 4 million units only twice; August was one of them. This disappointing set of data reflects the urgent need for new drivers in the real estate market. Compared to the double-digit annual increase during the pandemic, the pace of rising housing prices has slowed, but affordability issues are still an important obstacle faced by buyers. The median second-hand housing sales price rose 1.6% from the same period last year to 429,100 US dollars, continuing the year-on-year upward trend since mid-2023. NAR chief economist Lawrence Yun said in a statement: “Mortgage interest rates are the opposite of the trend in second-hand housing sales, so it is not surprising that high mortgage interest rates have led to a slight decline in home buying activity.” However, in a conference call with reporters, Yun said that in the face of rising mortgage interest rates, home purchases “have not collapsed,” and pointed out that employment and wage growth have helped support demand. However, he said the mortgage rate could soon hit 7%.