U.S. existing home sales fell more than expected in August as house prices remained elevated despite a continued improvement in supply.

Sales of previously occupied 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 kept rising.

Three of the four regions recorded month-to-month gains in home sales; the Midwest was the exception, as sales held steady there. Sales decreased on an annual basis in every region except the Northeast, where they matched last year’s levels.