- Existing home sales rose 1.3% from July to a seasonally adjusted annual rate (SAAR) of 5.49 million in August, according to the National Association of Realtors. They were up 2.6% from a year ago.
- The median price for existing homes in August was $278,200, up 4.7% from a year earlier ($265,600). It was the 90th straight month of year-over-year price gains.
- Total housing inventory at the end of August fell 2.1% from July to 1.86 million. That's a 2.6% decrease from 1.91 million in August 2018.
This is what low mortgage rates look like in action: Existing home sales rose in August to their highest level since March 2018. Sales are recorded when deals close, so these figures really represent buying behavior in July or even just before. Mortgage rates have been low for many months, and while they were up slightly in July, buyers who are thirsty for homes are still enticed by a market with low rates.
Given the other constraints that buyers face — tight inventory and strained affordability — their enthusiasm for low rates is bound to be muffled, which explains why August existing sales gained only modestly and sales have struggled to gain momentum for much of this year.
Growing uncertainty in the broader economy also makes them reluctant to dive right in, especially if they're not seeing the homes of their dreams. Indeed, consumer sentiment showed signs of waning in August. Either way, following yesterday’s strong home construction figures, it appears that the housing market is gaining some momentum as autumn approaches. Even stronger sales volumes may be around the corner given that mortgage rates plummeted in August.
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