United States existing home sales rose by 1.2% in October, as mortgage rates fell to their lowest point in 2025.
The seasonally adjusted annual sales rate was 4.10 million last month, according to the National Association of Realtors (NAR). Existing home sales were also up 1.7% year-over-year.
“Home sales increased in October even with the government shutdown due to homebuyers taking advantage of lower mortgage rates,” said NAR chief economist Lawrence Yun.
“Rents are decelerating which will reduce inflation and encourage the Federal Reserve to continue cutting rates and pulling back their quantitative tightening," said Yun. “This will help bring more homebuyers into the market since the Fed rate has an indirect impact on mortgage rates.”
The median existing home price increased by 2.1% year-over-year to US$415,200. This is the 28th consecutive month of year-over-year price growth.
Condominiums and co-op sales were up 5.4% to 390,000, outpacing single-family home sales. Single-family home sales grew by 0.8% to 3.71 million.
Total housing inventory was 1.52 million units, dropping 0.7% from the previous month, but rising 10.9% year-over-year.
Sales in the Northeast remained flat from September, and led year-over-year gains at 4.3%. The Midwest saw a 5.3% monthly sales increase, and the South’s monthly sales rose by 5.3%.
The West was the only region to post a decrease in sales, falling 1.3% from September and down 2.6% year-over-year. Its median price was the highest of any region, rising 0.1% in the past year to $628.500.
U.S. 30-year mortgage rates dropped to their lowest point in 2025 during the week to 29 October, at just 6.17%.
Mortgage rates had largely been declining since July as markets anticipated the Federal Reserve’s interest rate cuts in September and October. Rates have risen again this month, however, with the 30-year mortgage rate at 6.26% in the week to 19 November.
Interest rate traders now project a 61% chance that the Fed will keep rates steady at its next meeting in December, according to CME FedWatch.
