US home sales weaken to slowest pace in more than a year as mortgage rates and prices climb

Billy Odell Tucker-Robinson Founder & Host — Banking With Billy Network • Financial Intelligence • Markets • World News • Independent Analysis
Published: 2026-09-10 • Permanent link

Fractures in the housing market have finally come to light, as sales of previously occupied US homes declined in August to their slowest annual pace in more than a year. According to data from the National Association of Realtors, existing home sales dropped 8.3% from the previous month, marking a 10.5% decline from the same period last year. This downturn is attributed to rising mortgage rates, which have made borrowing more expensive for prospective homebuyers.

Rising mortgage rates have far-reaching implications for investors, as the decline in housing sales could lead to a slowdown in economic growth. Higher borrowing costs for consumers and businesses could reduce demand for housing, further exacerbating the downturn. This, in turn, could have a ripple effect on the broader economy, potentially leading to higher unemployment rates and decreased consumer spending.

The current state of the housing market is a far cry from the rosy predictions made by industry experts just a year ago. Since last quarter, mortgage rates have risen by over 2%, making it increasingly difficult for homebuyers to secure financing. What drove this sudden shift? Economists point to the ongoing war between the US and Iran, which has led to increased uncertainty in global markets and higher borrowing costs.

As the housing market continues to slow, investors are left wondering what's next. While some experts predict a short-term downturn, others believe that the housing market will eventually stabilize. With interest rates expected to remain high for the foreseeable future, the focus will shift to the government's efforts to stimulate the economy. One key catalyst to watch is the upcoming Federal Reserve meeting, where policymakers will likely discuss their plans to address the slowdown in economic growth.