U.S. existing home sales fell more than expected in August as house prices remained elevated despite a continued improvement in supply. Home sales fell 2.5% last month to a seasonally adjusted annual rate of 3.

LOS ANGELES -- Sales of previously owned U.S. homes fell in August to the slowest annual pace in nearly a year even as mortgage rates eased and the supply of properties on the market continued to rise.

Sales of previously owned US homes fell in August, according to industry data released Thursday, but lower mortgage rates and growing supply were likely to boost the industry.