US home sales edge up monthly but fall 2.2% from a year ago

Existing home sales in the United States increased by 1.5 percent in September compared to August, reaching a seasonally adjusted annual rate of 3.99 million units, according to the National Association of Realtors. However, this rise represents a 2.2 percent decrease from September 2022. The latest sales data surpasses the 3.98 million annual pace that economists had anticipated.

Home prices continued to climb nationally, with the US median sales price reaching an all-time high for September at $417,500, based on data from 1999. Despite this, the housing market remains sluggish due to rising mortgage rates and home prices, discouraging prospective homebuyers. Lawrence Yun, chief economist at NAR, noted that the market is challenging, especially with mortgage rates on the rise.

Mortgage rates reached a high of 7.4 percent last week, the highest level in almost three years, driven by concerns over inflation, geopolitical tensions, and the US government debt. While there are now 1.6 million unsold homes on the market, the highest level since November 2019, the market remains below historical norms, with a 4.8-month supply at the current sales pace.