Serrari Group

The American housing market is navigating choppy waters as existing home sales faced a 0.7 percent decline in August, according to the latest data from the National Association of Realtors (NAR). This trend reflects the challenges posed by rising mortgage rates and limited supply.

Existing home sales reached an annual rate of 4.04 million units last month, adjusted for seasonality. This figure fell below analyst expectations and marked a substantial 15.3 percent drop from the same period last year.

The primary driving force behind this decline is the upward trajectory of mortgage rates. As interest rates continue to climb, the cost of homeownership has risen, deterring potential buyers and dissuading existing homeowners from listing their properties for sale, especially after securing lower interest rates in previous years.

Lawrence Yun, the Chief Economist at NAR, offered insights into the situation, emphasizing the short-term impact of mortgage rate changes and the long-term influence of job gains. Despite the slowdown in sales, Yun noted that home prices continued to rise, maintaining levels last witnessed in January.

He also stressed the critical need for a substantial increase in housing supply to stabilize home prices. Yun stated, “Supply needs to essentially double to moderate home price gains.”

In August, the median price for an existing US home reached $407,100, representing a 3.9 percent increase from the same month in the previous year.

Meanwhile, the total housing inventory also contracted from July levels, suggesting potential challenges in the months ahead. Economists Ian Shepherdson and Kieran Clancy of Pantheon Macroeconomics expressed concerns about a possible “renewed drop in sales” following a recent decline in mortgage applications, without pinpointing a definitive bottom for these applications.

The widely-followed 30-year fixed-rate mortgage averaged approximately 7.2 percent as of September 14, according to Freddie Mac. This rate was substantially higher than the 6 percent observed a year ago and a notable departure from the 2.9 percent rate recorded in September 2021.

Analysts anticipate a continuation of the downward trend in sales in the near future. The Pantheon report concluded, “A genuine recovery is contingent on a substantial reduction in mortgage rates.”

These challenges underscore the intricate interplay between interest rates, housing supply, and the broader economic context. As industry experts and policymakers closely monitor these dynamics, prospective buyers and sellers remain vigilant, adjusting their strategies in response to market conditions.

Photo Source: Google

By: Montel Kamau
Serrari Financial Analyst
24th September, 2023

Share this article:
Article and News Disclaimer

The information provided on is for general informational purposes only. While we strive to keep the information up to date and accurate, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk. is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information on the website is provided on an "as-is" basis, with no guarantee of completeness, accuracy, timeliness, or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.

In no event will be liable to you or anyone else for any decision made or action taken in reliance on the information provided on the website or for any consequential, special, or similar damages, even if advised of the possibility of such damages.

The articles, news, and information presented on reflect the opinions of the respective authors and contributors and do not necessarily represent the views of the website or its management. Any views or opinions expressed are solely those of the individual authors and do not represent the website's views or opinions as a whole.

The content on may include links to external websites, which are provided for convenience and informational purposes only. We have no control over the nature, content, and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorsement of the views expressed within them.

Every effort is made to keep the website up and running smoothly. However, takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.

Please note that laws, regulations, and information can change rapidly, and we advise you to conduct further research and seek professional advice when necessary.

By using, you agree to this disclaimer and its terms. If you do not agree with this disclaimer, please do not use the website., reserves the right to update, modify, or remove any part of this disclaimer without prior notice. It is your responsibility to review this disclaimer periodically for changes.

Serrari Group 2023