Home resales are essentially flat, falling 0.2 percent to a 4.00 million unit seasonally adjusted annual rate in August from 4.01 million units in July. The consensus for August sales is 3.95 million units in the Econoday survey of forecasters. Sales of single-family homes dip 0.3 percent in August to 3.63 million units and sales of multi-unit homes are unchanged at 370,000 units. Compared to a year ago, total sales are up 1.8 percent with single-family homes up 2.5 percent and multi-unit homes down 5.1 percent.

Sales of single-family homes may be a bit slower due to higher prices, although mortgage rates have eased in August compared to July. The average Freddie Mac 30-year fixed rate mortgage is 6.59 percent in August after 6.72 in July and 6.50 in August 2024. Prices may be driving some sales to the multi-unit sector. The pace of home sales is also slower as properties are listed an average of 31 days in August compared to 28 days in July and 26 days in August 2024.

The supply of homes for sales is also essentially unchanged in August. The months' supply of all homes remains at 4.6 in August from July, but a bit bigger than the 4.2 months in August 2024. The supply of single-family homes is at 4.4 months in August after 4.5 months in July and 4.1 in August 2024. The supply of multi-unit homes is 6.2 months in August after 6.3 months in July and 5.3 months a year ago.

The price of an existing home is down 0.7 percent in August to $422,600 from $425,700 in July, but up 2.0% compared to August 2024.

Sales expected to stay soft at a 3.95 million rate in August versus 4.01 million in July.

Existing home sales tally the number of previously constructed homes, condominiums and co-ops in which a sale closed during the month. Existing homes (also known as home resales) account for a larger share of the market than new homes and indicate housing market trends.

This provides a gauge of not only the demand for housing, but the economic momentum. People have to be feeling pretty comfortable and confident in their own financial position to buy a house. Furthermore, this narrow piece of data has a powerful multiplier effect through the economy, and therefore across the markets and your investments. By tracking economic data such as home resales, investors can gain specific investment ideas as well as broad guidance for managing a portfolio.

Even though home resales don't always create new output, once the home is sold, it generates revenues for the realtor. It brings a myriad of consumption opportunities for the buyer.

Refrigerators, washers, dryers and furniture are just a few items home buyers might purchase. The economic"ripple effect" can be substantial especially when you think a hundred thousand new households around the country are doing this every month. Since the economic backdrop is the most pervasive influence on financial markets, home resales have a direct bearing on stocks, bonds and commodities. In a more specific sense, trends in the existing home sales data carry valuable clues for the stocks of home builders, mortgage lenders and home furnishings companies.