Home sales remained down in the dumps in August—but there’s reason to believe they could perk up soon. Previously owned homes were sold at a seasonally adjusted annual rate of 3.86 million in August,

American home sales fell to the lowest level since October 2023, as home buyers held back in the face of high mortgage rates and record-high home prices. Sales of previously-owned homes fell 2.5% to an annual rate of 3.

Home sales were disappointing again in August, but the recent development of lower mortgage rates coupled with increasing inventory is a powerful combination that will provide the environment for sales to move higher in future months,