Sales of previously owned homes in the United States fell in October to their lowest level in more than 16 years, the National Association of Realtors said on Thursday, as rising mortgage rates and still-high prices kept buyers on the sidelines.
Existing-home sales dropped 5.5 percent last month to a seasonally adjusted annual rate of 3.75 million units, the lowest since August 2010, when sales were falling after the end of a homebuyer tax credit. Economists polled by Reuters had expected a smaller decline, to a 3.85 million-unit rate. Sales were down 8.8 percent from a year earlier.
The average 30-year fixed mortgage rate climbed to 7.33 percent in October, up from 6.86 percent in September, according to Freddie Mac, pushing monthly payments higher just as prices stayed elevated. The median existing-home price was $416,700, up 0.4 percent from a year ago and the highest for any October on record.
Sales fell from September in the Midwest, South and West and were flat in the Northeast, while sales declined from a year earlier in all four regions. Single-family home sales fell 5.8 percent to a 3.41 million-unit rate, down 8.6 percent from October 2025.
Inventory rose 1.3 percent to 1.59 million units, up 4.6 percent from a year ago. At October's sales pace, it would take 5.1 months to sell through the current stock of homes, the most since November 2015. Sales are counted at closing, so last month's figures largely reflect contracts signed in August and September. Realtor.com chief economist Danielle Hale said sales were likely to stay low for the rest of 2026 while mortgage rates remain high.
