United States existing home sales increased to a seven-month high as mortgage rates fell to their lowest point of 2025.
Existing home sales rose by 1.5% month-over-month in September, which is the highest level since February, according to the National Association of Realtors (NAR).
This comes as the average 30-year fixed mortgage rate dropped to 6.19% for the week ending 23 October, down from 6.27% according to Freddie Mac. This is the lowest level they’ve been in more than a year.
The NAR chief economist said the falling mortgage rate and improving housing affordability are contributing to the increase in home sales.
"Inventory is matching a five-year high, though it remains below pre-COVID levels," Yun added.
"Many homeowners are financially comfortable, resulting in very few distressed properties and forced sales. Home prices continue to rise in most parts of the country, further contributing to overall household wealth."
Home inventory in September also rose 1.3% from August and 14% from September last year to 1.55 million.
The median sales price for September reached US$415,200, which is 2.1% higher than a year ago, marking the 27th consecutive month of year-over-year growth.
The highest month-over-month home sales increase was in the West, where they rose 5.5%.
The only region with a month-over-month decrease was the Midwest, which fell by 2.1%.
The U.S. government shutdown has delayed official economic data, and some realtors have said it has delayed contract closings as prospective buyers in flood-prone regions are unable to get the necessary insurance.
