An article summarized by Reuters:
U.S. existing home sales rose 1.5% in September to an annualized rate of 3.99 million units, beating economists’ expectations of 3.95 million. However, sales remained weak overall, falling 2.2% compared with September last year. The National Association of Realtors said August and September were the slowest months for home sales so far this year, as rising mortgage rates continued to make homeownership less affordable.
Mortgage rates have climbed amid inflation concerns and rising U.S. Treasury yields linked to the U.S.-Israeli war with Iran. The average 30-year fixed mortgage rate reached 7.40% last week, its highest level since November 2023, making it harder for prospective buyers to qualify for loans. Regional sales increased in the South and West, declined in the Northeast, and remained unchanged in the Midwest.
Meanwhile, housing inventory increased 1.9% to 1.60 million homes, the highest level since November 2019 and 4.6% above a year earlier, giving buyers more options. The median existing-home price rose 1.3% year over year to $417,500, a record for September. First-time buyers accounted for 31% of sales, while homes spent a median of 33 days on the market. Despite improving inventory, elevated borrowing costs continue to weigh on the housing market.
