Sales of previously occupied U.S. homes fell in August to the slowest annual pace in nearly a year even as mortgage rates eased and the supply of properties on the market continued to rise. Existing home sales fell 2.5% last month, from July, to a seasonally adjusted annual rate of 3.86 million, the National Association of Realtors said Thursday.

Sales decreased 2.5% month on month to a 3.86 million according to a report from the National Association of Realtors

American home sales fell to the lowest level since October 2023, as home buyers held back in the face of high mortgage rates and record-high home prices. Sales of previously-owned homes fell 2.5% to an annual rate of 3.

Home sales were disappointing again in August, but the recent development of lower mortgage rates coupled with increasing inventory is a powerful combination that will provide the environment for sales to move higher in future months,