Sales of previously owned U.S. homes fell sharply in October to their lowest level in more than 16 years, as rising mortgage rates squeezed buyers already struggling with high prices.
\n\nExisting-home sales dropped 5.5 percent from September to a seasonally adjusted annual rate of 3.75 million, the National Association of Realtors said Thursday. Economists surveyed by The Wall Street Journal had expected a 3.8 percent decline.
\n\nThe sales pace was the weakest since August 2010, when the housing market was still struggling in the aftermath of the financial crisis. The monthly decline was the largest since January. Sales were down 8.8 percent from a year earlier, the biggest annual decrease since 2023.
\n\nThe average rate on a 30-year fixed mortgage rose to 7.33 percent in October from 6.86 percent in September and 6.25 percent a year earlier, according to Freddie Mac figures cited by NAR.
\n\nOctober’s completed sales largely reflect contracts signed in September. The further increase in borrowing costs last month threatens to weigh on coming sales.
\n\nPrices offered buyers little relief. The national median existing-home price rose 0.4 percent from a year earlier to $416,700.
\n\nInventory increased even as sales declined. There were 1.59 million homes available at…
Original source: https://www.breitbart.com/economy/
