(Reuters) -Sales of previously owned U.S. homes ticked lower in August amid affordability issues for buyers thanks to still-pricey homes on the market and interest rates on mortgages that remain relatively steep despite recent drops in borrowing costs.

Home sales slipped 0.2% last month to a seasonally adjusted annual rate of 4.00 million units from an unrevised 4.01 million in July, the National Association of Realtors said on Thursday. Economists polled by Reuters had forecast home resales would slip slightly further, to 3.96 million units. Sales rose 1.8% on a year-over-year basis.

“Home sales have been sluggish over the past few years due to elevated mortgage rates and limited inventory,” NAR Chief Economist Lawrence Yun said in a statement. “However, mortgage rates are declining and

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