U.S. existing-home sales fell 2% in August to a seasonally adjusted annual rate of 3.98 million, while pending home sales unexpectedly rose 0.3% from July to an index reading of 71.2, National Association of Realtors data showed. Pending sales, which represent signed contracts that generally become completed sales within one or two months, were nevertheless 4.7% below their year-earlier level and remained roughly 30% below pre-pandemic norms, according to NAR chief economist Lawrence Yun. Contracts increased in the South and West but fell in the Northeast and Midwest, while every region recorded an annual decline. The 30-year fixed mortgage rate averaged 6.76% last week, up from 6.71% and the highest level in more than a year, with Mortgage News Daily's daily measure already above 7%. Higher borrowing costs, near-record home prices and limited inventory continue to restrain demand. Some homeowners are withdrawing listings in hopes of selling later, potentially reducing transaction volumes even as tighter supply supports prices. Analysts expect elevated mortgage rates and subdued sales activity to persist through the remainder of the year.