US Housing Market Slows in August as Pending Sales Slip 0.2% and Mortgage Rates Hit 6.66%
Updated
Updated · Newsweek · Sep 2
US Housing Market Slows in August as Pending Sales Slip 0.2% and Mortgage Rates Hit 6.66%
3 articles · Updated · Newsweek · Sep 2
Summary
Pending home sales fell 0.2% year over year in August—the first annual decline since November 2025—while contract signings dropped 3.7%, extending a second straight monthly slowdown.
Mortgage rates climbed to 6.66% in August from 5.98% in late February, squeezing affordability alongside still-high prices and broader economic uncertainty tied to the Iran war.
$424,500 was the national median list price in August, down 1.3% from a year earlier, while 20.4% of active listings saw price cuts and delistings fell 12.6%, showing sellers are staying in the market longer.
Active listings rose 3.6% to 1.14 million—the fastest annual inventory growth this year—though supply remained 11.1% below pre-pandemic norms, underscoring a persistent housing shortage.
September will hinge on delistings, price-cut behavior and whether softness spreads beyond the South and West, with the Midwest and Northeast now showing rising inventory and price-cut rates.