US Home Sales Reach Lowest Level Since 2016 This Year

US Home Sales Fall to Lowest Level Since 2010

Home sales in the United States decreased by 5.5 percent in October, according to data released by the National Association of Realtors (NAR). This represents the lowest level since August 2010.

The NAR reported a seasonally adjusted annual rate of 3.75 million units for home sales in October. The decline was attributed to rising mortgage rates, which have hovered above 7 percent. Lawrence Yun, Chief Economist at the NAR, stated that “home buying is difficult when mortgage rates have climbed to their highest levels since 2000.”

The report found that year-over-year sales decreased by 8.8 percent, with month-over-month declines observed in the Midwest, South, and West regions. The Northeast region saw no change in sales. First-time buyers accounted for 29 percent of home purchases last month, down from 31 percent in September and 32 percent in October last year.

The US housing market has been experiencing a slump since 2022, when mortgage rates increased from pandemic-era lows. Sales of previously occupied homes were essentially flat last year, stuck at a 30-year low. The average 30-year fixed-rate mortgage was 7.33 percent in October, according to Freddie Mac. This rate is influenced by factors such as inflation, Federal Reserve policy, and bond-market expectations.

The NAR report noted that homeowners across the country are largely in a comfortable financial position due to sizable housing wealth accumulation. Yun expects home sales this year to likely end up lower than in 2025.

Source: Al Jazeera