Home sales of previously owned homes fell 0.7% in August from July to a seasonally adjusted, annualized rate of 4.04 million units. Sales were down 15.3% from August last year, likely due to contracts signed in June and July when mortgage rates were in the high 6% range. Inventory levels are very low at just 1.1 million units for sale in August, down 0.9% from July and down over 14% year-over-year. Low inventory has led to home prices increasing, with the median home price rising 3.9% year-over-year to $407,100 in August. Higher mortgage rates and lower inventory levels are negatively impacting homebuyers. Rising prices and mortgage rates are tipping the scales to favor renting over buying in most major metro areas according to analysts.