Existing Home Sales Edge Lower in August

Lower Rates Bolster Buying in August

Source: Economics Group of Wells Fargo Bank, N.A.Summary Home Buyers Jump on Lower Rates

  • Existing home sales declined 0.4% in August, beating market consensus for a 2.3% drop. The better-than-expected outcome was likely owed to buyers jumping at the chance to lock in slightly lower mortgage rates. The average commitment rate for a 30-year fixed rate conventional mortgage was 5.2% in August, down from 5.4% in July.
  • Elevated mortgage rates and increased economic uncertainty appear to be holding back both home buying and selling. After increasing in each of the past five months, total housing inventory declined 1.5% to 1.28 million during August, a level that is unchanged compared to the same month last year.