U.S. Existing-Home Sales Rise 1.5% in September to 3.99 Million

Sales of previously owned U.S. homes rose in September, but remained below year-earlier levels as higher mortgage rates and elevated prices kept the housing market near a multiyear low.

Existing-home sales increased 1.5% from August to a seasonally adjusted annual rate of 3.99 million units. Sales were down 2.2% from September a year earlier.

The annual sales pace has mostly hovered near 4 million since 2023, well below the historical norm of about 5.2 million. September marked the second straight month below the 4 million threshold.

The median U.S. home price climbed 1.3% from a year earlier to $417,500. That was a record September median price based on records dating to 1999, while prices rose year over year for the 39th consecutive month.

“This is a very tough market out there, especially with mortgage rates rising,” said Lawrence Yun, chief economist of the National Association of Realtors.

The benchmark 30-year mortgage rate reached 7.4% last week, its highest level in nearly three years. The rate had briefly fallen below 6% before the war began in late February.

Higher borrowing costs have led many prospective buyers to delay purchases. Buyers who can afford current rates or pay cash have a wider selection as homes remain on the market longer, while the housing market has been in a slump since rates began climbing from pandemic-era lows in 2022.

Unsold inventory totaled 1.6 million homes at the end of September, the highest level since November 2019. Inventory rose 1.9% from August and 4.6% from a year earlier, producing 4.8 months’ supply at the current sales pace.

A four- to six-month supply is generally viewed as a balanced market between buyers and sellers. The latest figures add to the affordability pressures described in TokenPost’s earlier coverage of U.S. housing costs.