US home sales fall below 4M as Fed rate hikes push affordability to a breaking point

US existing-home sales dropped to 3.98 million annualized in August, the lowest in a year and below 4 million for the first time this cycle, due to rising mortgage rates driven by Federal Reserve hikes. The 10-year Treasury yield hit around 5%, pushing mortgage rates near 7%, making buying or moving costly despite record-high home prices. Builders like D.R. Horton and KB Home report rising cancellations and declining deliveries, signaling weakened demand and tighter affordability. The Fed’s focus on reducing inflation to 2% risks freezing the housing market, with key indicators to watch including Treasury yields, builder cancellation rates, and profit margins in coming quarters.

Shares of D.R. Horton, a major home builder mentioned in the article, are trading at USD 146.09 with a 1-day gain of 4.91% on Pluang. The stock's market cap stands at $40.31 billion, reflecting ongoing investor interest despite the housing market challenges. These figures are current as of Sep 24, 2026 05:11 WIB.