August 2026
Rhode Island Housing Report

What’s Happening in the Market?

• The national August housing market cooled slightly as mortgage rates climbed to their highest level in over a year, continuing to weigh on affordability and buyer confidence. New England and South Florida also saw sales slow, with decreases in sales in most states. 

• Nationally, existing home sales fell 2.0% from July, according to the National Association of Realtors, although sales remain up 1.6% year-to-date through the first eight months of the year. Inventory rose to 4.9 months’ supply, its highest level in more than ten years. NAR Chief Economist Lawrence Yun noted, 

“Mortgage rates and home sales move in opposite directions, so it’s not surprising to see a mild dip in home buying activity due to high mortgage rates.” Homebuying demand, despite higher interest rates, is no doubt being supported by rising wages, which grew 3.1% in August, along with 643,000 net new jobs added since the start of the year. Job creation and wage growth typically drive housing demand.”

• In New England and South Florida, limited inventory continued to support prices, while buyers remained cautious as mortgage rates rose further. After Labor Day, however, we saw the largest increase in homes since 2021. 

• According to Mortgage News Daily, 30-year mortgage rates reached approximately 6.87% at the end of August, their highest level since June 2025. With rates climbing above 7% so far in September, the fall market may stay slower than usual. 

• All of this means that sellers need to be reasonable with their pricing. Price adjustments are much more prevalent at this time of year, especially with the affordability concerns driven by fuel, inflation, and mortgage rates. If the house has been on the market even for a week without much interest, it’s likely that the list price was overshot and a reduction will reinvigorate buyer demand. 

• For buyers, NOW is the best time of year to make a home purchase! Inventory is higher and competition is lower. These conditions allow for greater negotiating power and a likelihood that a good deal is within reach.  

• Consider this a strong reminder to buyers that just because a home hasn’t sold immediately doesn’t mean that there is something wrong with the house! That’s the nature of seasonal conditions, so don’t miss out on your perfect home.