High borrowing costs push down American housing sales

Advertisement 1 This advertisement has not loaded yet, but your article continues below. Breadcrumb Trail Links HomeLifeHomesCondosNew Homes High borrowing costs push down American housing sales Rate for popular 30-year mortgages is pushing 7 per cent, a challenge for many first-time homebuyers. Author of the article: By Joel Schlesinger  •  for the Calgary Herald Published Sep 24, 2026 Last updated 42 minutes ago 1 minute read Join the conversation The median price of a home is up about two per cent. PHOTO BY JOE RAEDLE /Getty Images Article content Home resales in the United States were down in August, the third consecutive month of declining activity. A recent report from TD Economics noted sales in the U.S. declined two per cent month over month, and slightly more than one per cent from a year ago. Article content It pointed to affordability hampering demand growth. Notably, higher interest rates for the popular 30-year term mortgages in the U.S. are now approaching seven per cent, making it challenging for first-time buyers to qualify for mortgages. Article content Article content Article content In turn, buyer activity has been below the historical average, TD stated, noting other high costs are also posing headwinds for demand growth. Article content Noon News Roundup Your weekday lunchtime roundup of curated links, news highlights, analysis and features. Sign Up By signing up you consent to receive the above newsletter from Postmedia Network Inc. Interested in more newsletters? Browse here. Article content Despite falling sales, the median price of a home in the U.S. was up nearly two per cent year over year in August to $585,000, based on data from the National Association of Realtors. Article content That’s despite rising inventory, which increased about three per cent from July and nearly six per cent from last August. Article content Sales fell the most by percentage in the nation’s northeast, off four per cent. Only the western U.S. experience no percentage decline in sales in August — though activity was flat year over year. Article content The TD report added that market supply continues to be tight despite increases in inventory, which has provided buyers with more choice. A key supply constraint has been higher building costs, driven higher by tariffs over the last year, leading to higher prices for new homes, which are out of reach financially to first-time buyers amid increased mortgage interest rates. Article…