US Home Sales Fall to Lowest Level Since 2010 in October

what happened

Sales of existing homes in the United States fell 5.5% in October to a seasonally adjusted annual rate of 3.75 million, the lowest since August 2010, the National Association of Realtors said on Thursday, according to Reuters and The Wall Street Journal.

Reuters economists had expected 3.85 million units, while WSJ's poll pointed to a 3.8% decline. Compared with a year earlier, sales plunged 8.8%, the steepest annual drop since 2023. The median existing-home price rose 0.4% from a year ago, to $421,900, NAR said.

Mortgage rates climbed above 7% in late summer, and buyers have largely stepped back while sellers increasingly offer concessions.

why it matters

October closings mostly reflect contracts signed in August and September, when borrowing costs jumped, so some economists warn the weakest readings may still be ahead. For markets, the data signals continued stress in housing and sensitivity of rates to Treasury yields and inflation.

market impact

US homebuilders and mortgage market: weak housing demand pressures the sector

• ▼US homebuilder stocks pressure down — weak home sales lower builders' outlook for orders and revenue

tags

instruments