Sales of previously occupied U.S. homes remained sluggish in August, even as a late-summer slide in mortgage rates brought home loan borrowing costs to a 10-month low.

Existing home sales slipped 0.2% last month from July to a seasonally adjusted annual rate of 4 million units, the National Association of Realtors said Thursday. That’s the slowest sales pace since June.

Sales rose 1.8% compared with August last year. The latest sales figure topped the 3.96 million pace economists were expecting, according to FactSet.

The national median sales price increased 2% in August from a year earlier to $422,600. That’s the 26th consecutive month that home prices have risen on an annual basis and the highest median sales price for any August on data going back to 1999.

The U.S. housing market ha

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