U.S. home sales slumped to the slowest pace in more than 16 years
Sales of previously occupied U.S. homes slumped in October to their slowest pace in more than 16 years as mortgage rates climbed sharply, ratcheting up borrowing costs for aspiring homebuyers. Existing home sales fell 5.5% last month from September to a seasonally adjusted annual rate of 3.75 million units, the National Association of Realtors said Thursday. That’s the slowest annual sales pace…
U.S. home sales dropped to their slowest pace in more than 16 years in October, according to the National Association of Realtors. Existing home sales fell 5.5% from September to a seasonally adjusted annual rate of 3.75 million units, marking the slowest annual sales pace since August 2010. This decline was due to rising mortgage rates, which climbed above 7% in September and hit their highest level in nearly three years last month.
Despite the slowdown in sales, home prices continued to rise nationally, reaching an all-time high for October at $416,700. The average rate on a 30-year mortgage, a key factor in borrowing costs, stayed above 7% and could remain elevated. This has made home buying less affordable for many potential buyers, leading to a decrease in first-time buyers, who now make up 29% of home purchases compared to 32% last year.
The inventory of unsold homes rose to 1.59 million, the highest level since November 2019, with a 5.1-month supply at the current sales pace. This prolonged inventory indicates a challenging market for both buyers and sellers.
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