The United States housing market is facing another setback as home sales fall to their slowest pace in more than a year, while rising mortgage rates and prices continue to make buying a home increasingly difficult.
According to AP News, existing-home sales dropped 2% in August from the previous month, reaching an annual pace of 3.98 million units. Sales were also down 1.2% compared with August 2025.
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At the same time, the median U.S. home price climbed 1.6% year over year to $429,100, setting a record for August. Mortgage rates have also increased, with the average 30-year fixed-rate loan reaching 6.76%.
Why are Americans struggling to buy homes?
Higher borrowing costs, expensive properties and limited housing supply are keeping many potential buyers out of the market.
Despite weaker sales, inventory has increased, giving buyers more options. However, affordability remains a major challenge, especially for first-time buyers, who represented only 30% of purchases in August.
The housing market has remained under pressure since mortgage rates began rising sharply in 2022.
