Overview
- The National Association of Realtors reported that existing‑home sales fell 5.5% in October to a 3.75 million seasonally adjusted annual rate, the weakest pace since August 2010, confirming a steep pullback in closed transactions.
- Mortgage costs spiked in late August and into September with 30‑year fixed rates rising above 7% and peaking near 7.40%, which disrupted contracts signed then and led to the October slump.
- Unsold inventory rose to about 1.59 million homes and months’ supply climbed to 5.1, the highest level since November 2015, showing more homes available relative to the slower sales pace.
- Higher rates squeezed affordability for buyers, cutting the share of first‑time buyers to 29% and helping boost cash purchases to 29% and investor or second‑home activity to roughly 20%.
- Because NAR counts sales at closing, the October drop reflects earlier contract activity and highlights how swings in Treasury yields, Fed policy expectations, and pre‑election uncertainty can quickly change market momentum.