Market Stats
Why Are Home Sales So Slow Right Now?
By David Golovin · September 12, 2026 · 3 min read
Existing-home sales fell to an annualized pace of 3.98 million in August, a level not seen since the 2008-10 housing crash. Prices are near record highs, rates are near 7%, and the market has mostly stopped trading.
Source: NAR Existing-Home Sales
Existing-home sales pace, annualized
Pandemic peak (2021)
6.12M
Pre-pandemic norm
5.0-5.5M
August, annualized
3.98M
Buyers are priced out
The 30-year fixed rate hit 6.76% this week, the highest of the year, and daily trackers put quoted rates above 7%. Combined with near-record prices, the monthly payment on a typical home has simply moved past what a typical income supports.
Source: Freddie Mac Primary Mortgage Market Survey
Sellers are locked in
Millions of homeowners are locked into rates far below today’s market, many under 4%. Selling means giving that rate up and financing the next home near 7%, so homeowners who would normally move are staying put. That keeps inventory tight and prices high even while sales collapse.
Source: FHFA National Mortgage Database
The one place the lock-in works for buyers
Those locked-in loans do not have to stay locked to the owner. FHA and VA loans are generally assumable: the buyer takes over the seller’s existing rate instead of financing at 7%. Roots shows over 20,000 active assumable listings, with estimated rates averaging 4.83% and thousands under 3%. In a frozen market, that is where the math still moves.
FAQ
Why are home sales so slow right now?
Two forces at once: buyers are priced out with 30-year rates near 7%, and sellers holding low pandemic-era rates refuse to give them up by moving. Fewer willing buyers plus fewer willing sellers means the fewest closings since the 2008-10 crash.
What is mortgage rate lock-in?
Rate lock-in is when homeowners keep homes they would otherwise sell because selling means trading a low mortgage rate for a much higher one. A homeowner with a 3% loan faces more than double the interest cost on their next home at 7%, so they stay put.
When will home sales pick back up?
Sales volume recovers when the payment math changes: rates fall, prices adjust, or incomes catch up. Most forecasters expect rates to stay above 6% into next year. Assumable loans are one of the few ways the math changes today, since the buyer takes over the seller’s existing rate.