Existing Home Sales Rise In October As Buyers Take Advantage Of Lower Mortgage Rates

U.S. existing home sales rose in October despite the government shutdown as homebuyers capitalized on lower mortgage rates.

According to data from the National Association of Realtors, sales of previously owned homes rose 1.2% in October over September, rising to 4.1 million units on a seasonally adjusted, annualized basis, in line with a Wall Street consensus estimate cited by MarketWatch.

“Home sales increased in October even with the government shutdown due to homebuyers taking advantage of lower mortgage rates.”

— Lawrence Yun, Chief Economist, NAR

According to the NAR report, existing home sales grew compared to September in the Midwest and South, while remaining unchanged in the Northeast and declining in the West.

Data from Freddie Mac showed that the 30-year fixed-rate mortgage (FRM) was at 6.24% in the week ending November 12, down 54 basis points over the past year. The 52-week average 30-year FRM rate stood at 6.67%, according to the firm.

Home Prices Surge

Data from Redfin showed that home prices surged in the four weeks ending November 16, registering the biggest gain in seven months despite slow demand.

The firm stated in its latest report that the median home sale price rose 2.3% during this period, driven by a decline in total inventory.

“Still, it’s important to note that home prices are growing slower than wages and inflation, meaning homebuying is becoming slightly more affordable,” the firm added.

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