Existing-home sales fell to their slowest pace in 16 years in October, underscoring the pressure that high borrowing costs have placed on the housing market. The decline came before mortgage rates eased again in the following week, so the two developments do not represent a simple cause-and-effect relationship.
The National Association of Realtors said Thursday that sales of previously owned homes dropped 5.5% in October to a seasonally adjusted annual rate of 3.75 million. That was the weakest pace since August 2010 and 8.8% below October 2025. The transactions had already closed by the time the latest mortgage-rate decline was reported, meaning those buyers generally made their purchases while rates were higher.
Prices edged higher as inventory increased
The median existing-home price was $416,700 in October, up 0.4% from a year earlier. The market also had 1.59 million homes available for sale, equal to a 5.1-month supply. A month's supply measures how long the available homes would last at the current sales pace if no additional properties came onto the market.
Sales declined in the West, South and Midwest and were unchanged in the Northeast. The West recorded the largest monthly drop, at 9.7%. The increased inventory gives buyers more choices than they had during tighter periods, while the slower pace of closings may give some buyers and sellers more room to discuss price, closing costs or a rate buydown, according to the report.
“Home buying is difficult when mortgage rates have climbed to their highest levels since 2000, aside from a single month in 2023. As a result, home sales fell to their lowest level since August 2010,” said Lawrence Yun, chief economist of the National Association of Realtors.
Mortgage rates moved lower after October's increase
The average 30-year fixed mortgage rate was 7.33% in October, according to the National Association of Realtors, up from 6.86% in September. Freddie Mac later reported that the average rate for a 30-year fixed mortgage fell to 7.11% in the week reported Thursday, from 7.18% the previous week. It was the fourth consecutive weekly decline and the lowest level in seven weeks.
| Mortgage type | Latest average rate | Rate one week earlier | Rate a year earlier |
|---|---|---|---|
| 30-year fixed | 7.11% | 7.18% | 6.24% |
| 15-year fixed | 6.45% | 6.57% | 5.49% |
The latest rates remain nearly a full percentage point above their year-earlier levels. Freddie Mac Chief Economist Sam Khater said the decline gives borrowers more flexibility, but the gap from last year continues to weigh on affordability for people buying homes and for homeowners considering refinancing.
- October existing-home sales fell to a seasonally adjusted annual rate of 3.75 million, the lowest since August 2010.
- The median price rose 0.4% from a year earlier to $416,700.
- Freddie Mac's weekly averages fell to 7.11% for a 30-year fixed mortgage and 6.45% for a 15-year loan.
