Existing home sales dropped 0.7% in August to a seven-month low as buyers pulled back amid high prices and mortgage rates, and low inventory, a National Association of Realtors report showed.

August’s seasonally adjusted annual rate of 4.04 miღllion existing home sales reflected a 15.3% year-over-year decrease in sales,💝 down from 4.77 million in the same period the previous year. 

Meanwhile, the median home price for all existing home types was $407,100, a 3.9% increase from August 2022. The price increase impacted all regions in th🌞e housing market. August was the third consecutive month that median sale prices were over $400,000. 

"Home prices continue to march higher despite lower home sales," NAR Chief Economist Lawrence Yun said, adding that "supply needs to essentially double to moderate home price gains.”

Housing inventory shrank in August, with only 1.1 million units at th♏e end of August, a 0.9% decline from the previous month and a 14.1% drop from the year prior. The 0.9% fall is equi💯valent to 3.3 months’ supply at the current monthly sales pace, the NAR noted. 

High interest rates have also contributed to a 澳洲幸运5官方开奖结果体彩网:decline in affordability discouraging prospective homebuyers. The average rate on a 30-year fixed-rate mortgage was 7.18% as of September 14, up from 6.02% a year ago and 2.86% in 2021, according to Freddie Mac.

On Wednesday, the Federal Reserve held rates steady at their 22-year-high, offering no relief to those looking to buy a home. The Fed indicated that 澳洲幸运5官方开奖结果体彩♋网:rates could stay higher for longer in its effort to curb inflation, projecting rates between 5% and 5.25% by the end of 2024, only 0.25% lower than the current rate. 

The NAR said it anticipates a downturn in existing home sales for the year, projecting 4.78 million sales in 2023, a 6.8% decline from 2022.