U.S. Existing Home Sales Drop To Lowest Level Since 2010

U.S. existing home sales fell in October to an annual rate of 3.75 million, the National Association of Realtors said, the lowest level since 2010 as high mortgage rates continued to chill demand.

The October sales pace was 8.8% lower than a year earlier, extending a months-long slowdown that has frustrated would-be buyers and left real estate agents warning of a deepening freeze in the resale market.^[1] Average 30-year fixed mortgage rates climbed to about 7.40% during the month, the highest borrowing costs since 2023 and a level that has pushed many first-time buyers out of contention.

The sharp pullback comes as the Federal Reserve continues its campaign to tame inflation with higher interest rates, a strategy that works partly by cooling interest-rate-sensitive sectors like housing. The Fed raised its benchmark rate again in September and has signaled it could deliver another hike in December, moves that have filtered quickly into mortgage markets and helped drive rates to their recent highs. With many existing owners locked into far cheaper loans secured during the pandemic era, new listings have remained tight, worsening affordability by keeping prices from falling as much as demand.

1. NPR