US Existing Home Sales Drop to 16-Year Low in October
Surging mortgage rates and inflation pushed existing home sales down 8.8% year-over-year to 3.75 million units, the weakest pace since 2008.
Existing home sales in the United States fell to their lowest level in 16 years last month, as elevated mortgage rates and persistent inflation continued to squeeze prospective buyers out of the market, according to data published Wednesday by the National Association of Realtors.
Sales of previously owned homes dropped to a seasonally adjusted annual rate of 3.75 million units in October, an 8.8% decline from the same period a year ago. The figures reflect conditions near a nearly three-year high in borrowing costs, which have sharply eroded purchasing power for millions of Americans.
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Despite the sales slump, home prices showed little sign of retreating. The median existing-home sales price edged up to $416,700, underscoring a persistent imbalance between housing supply and demand even as transaction volume contracts.
The weakness was broadly distributed geographically. Sales declined across the Midwest, South, and West, with only the Northeast managing to hold steady against the national trend. The divergence suggests some regional markets retain a measure of resilience, though the overall trajectory points to continued cooling.
Analysts note that the combination of high prices and elevated rates has pushed monthly mortgage payments to historic levels, effectively sidelining a significant share of would-be buyers. With no immediate catalyst for rate relief visible at the time of the report, the market's near-term outlook remains constrained. Continue reading at Business | The Guardian.
