The U.S. housing market is back in focus Thursday as investors, homeowners, real estate professionals and prospective buyers await the latest reading on existing-home sales.
The National Association of Realtors is scheduled to release its August 2026 Existing-Home Sales report at 10:00 a.m. ET on Thursday, September 10. The report will provide a fresh look at whether Americans are returning to the housing market—or whether elevated mortgage rates and affordability pressures continue to keep buyers on the sidelines.
The numbers arrive at an especially important moment. Mortgage rates have climbed again, Treasury yields remain elevated, and investors are simultaneously watching inflation data that could help determine the Federal Reserve’s next move.
July Home Sales Fell 1.7%
The August report follows a relatively weak July.
Existing-home sales declined 1.7% from June to July, falling to a seasonally adjusted annual rate of 4.06 million homes, according to the National Association of Realtors. Sales were still 0.7% higher than a year earlier.
Housing inventory also declined 1.9% during July to approximately 1.54 million homes, representing about 4.6 months of supply at the current sales pace.
Home prices, meanwhile, remained stubbornly high. NAR reported a median existing-home sales price of $434,100, up 2% from the previous year.
That combination—high prices and expensive financing—continues to create one of the biggest obstacles facing would-be buyers.
Mortgage Rates Are Moving Higher Again
Any improvement in August housing activity now faces another challenge: borrowing costs are rising.
The average rate on a 30-year fixed U.S. mortgage reached 6.85% for the week ending September 4, according to Mortgage Bankers Association data reported by Reuters. That marked the highest level since June 2025. Mortgage applications fell 2.7% from the previous week, while refinancing activity dropped 6.2%.
The increase has been driven partly by rising Treasury yields as markets digest inflation concerns, higher energy prices, federal debt and expectations surrounding Federal Reserve policy.
For buyers, relatively small movements in mortgage rates can translate into significant differences in monthly payments.
That means Thursday’s housing report isn’t simply about whether more homes were sold in August. It may provide another indication of how much higher borrowing costs are affecting consumer behavior.
What to Watch in the August Home Sales Report
Several numbers deserve particular attention when the report arrives.
Sales volume will provide the clearest indication of whether demand strengthened or weakened from July’s 4.06 million annualized pace.
Inventory will also matter. More homes available for sale could gradually shift negotiating power toward buyers, particularly in markets where inventory has recovered significantly.
Home prices remain another critical component. Prices have continued rising nationally despite weak transaction volumes, although conditions vary considerably from one metropolitan area to another.
Finally, regional differences could tell an important story. NAR’s July data showed sales increasing in the Northeast, remaining unchanged in the West and declining in both the Midwest and South.
Housing Is Caught Between Prices and Interest Rates
The housing market continues to face an unusual affordability equation.
Existing homeowners who locked in historically low mortgage rates several years ago have had less incentive to sell and replace those mortgages with substantially more expensive loans. At the same time, buyers entering today’s market must contend with home prices that remain elevated alongside mortgage rates approaching 7%.
The result has been a market with relatively low transaction volume even as home values have remained resilient.
Recent conditions aren’t providing much immediate relief. Freddie Mac data showed the average 30-year mortgage at 6.71% last week, its highest level in more than a year.
The Federal Reserve Is Another Wild Card
Housing data are arriving alongside an increasingly important debate over interest rates.
The Federal Reserve meets September 15–16, and policymakers are weighing persistent inflation against broader economic conditions. A Reuters poll published Wednesday found most economists expecting the Fed to hold rates steady through the remainder of 2026, although a growing number now anticipate at least one additional rate increase.
Mortgage rates aren’t set directly by the Federal Reserve, but expectations surrounding monetary policy and inflation can significantly influence Treasury yields and, ultimately, mortgage borrowing costs.
That makes this week’s inflation reports particularly important for housing.
Why Thursday’s Number Matters
Housing touches a huge portion of the U.S. economy.
Home purchases generate activity across mortgage lending, construction, furniture, appliances, home improvement, insurance and numerous other industries. Housing conditions also influence household wealth and consumer confidence.
A stronger-than-expected August report could suggest buyers are gradually adapting to the higher-rate environment.
Another decline, however, would reinforce the idea that affordability remains a major constraint on the market.
Either way, the August Existing-Home Sales report should provide another important snapshot of a housing market attempting to find equilibrium between high prices, elevated mortgage rates, changing inventory and increasingly cautious consumers.
The National Association of Realtors is scheduled to publish the numbers at 10:00 a.m. Eastern on Thursday, September 10.
This Newsroom will update the story once the August numbers are released.
