US Housing Market Faces Challenges as Home Sales Decline and Mortgage Rates Rise

Sales of previously owned homes in the US declined in August, falling short of economists' predictions, as higher mortgage rates continue to impact both buyers and sellers. The National Association of Realtors reported a 0.7% decrease in sales, with an annualized rate of 4.04 million. The chief economist of NAR warned that mortgage rates could potentially rise to 8%, further dampening home sales. The shortage of housing supply has also contributed to rising home prices, making affordability a challenge for buyers.