SEATTLE - September 8, 2026 - U.S. home sales declined in August as mortgage rates remained above 6.5%, while the number of homes available for sale continued to rise, according to Zillow’s latest housing market report.

Zillow reported that home sales fell 0.6% year over year in August, following a 7% annual increase in July. Newly pending listings, which provide an earlier indication of future home sales, declined 2.6% year over year in August. Zillow said the figures indicate that elevated borrowing costs continue to weigh on housing demand.

The typical U.S. home value reached $369,678, up 1.3% from a year earlier, while the Zillow Home Value Index declined 0.1% from July. The estimated monthly mortgage payment for a typical U.S. home was $1,897, assuming a 20% down payment and including estimates for taxes, insurance and maintenance. That payment was 2% higher than a year earlier.

At the same time, housing inventory continued to expand. Zillow recorded approximately 1.41 million homes for sale nationwide in August, representing a 3% increase from the previous year. New for-sale listings totaled 356,934, up 2.4% year over year but down 7.9% from July. The share of listings receiving a price cut reached 26.3%, slightly above the level recorded a year earlier.

The rental market is also showing signs of absorbing some demand from households delaying home purchases. Zillow reported that the typical U.S. rent reached $1,948 in August, an increase of 2.5% from a year earlier. Meanwhile, 39.2% of rental listings on Zillow offered a concession during the month.

“The for-sale housing market took a step back in August, and mortgage rates above 6.5% are the primary culprit,” said Mischa Fisher, chief economist at Zillow. Fisher noted that the combination of weaker sales and pending listings points toward continued softness in the housing market, while higher inventory provides additional choice for buyers who remain active.

Zillow is a U.S. housing technology company whose platform provides services and information for people searching for homes and rentals, as well as tools for buyers, sellers and real estate professionals. The company says its living database contains approximately 173 million homes and that its platforms recorded 239 million average monthly unique users in the second quarter of 2026.

The company’s August market findings provide a current view of how mortgage costs, inventory, home values and rental demand are interacting as the U.S. housing market moves through the second half of 2026.

About Zillow

Zillow is a housing technology company providing products and services designed to help people search for, rent, buy, sell and finance homes. Founded in 2006, Zillow has developed an ecosystem connecting consumers with housing information, real estate professionals and related services.