US Home Sales Surge 1.2% in October Amid Lower Mortgage Rates

UPDATE: Home sales in the U.S. have surged, with a notable increase of 1.2% in October, marking the fastest pace since February. This uptick is primarily driven by declining mortgage rates, which are encouraging more buyers to enter the housing market, according to the National Association of Realtors.

Sales of previously occupied homes rose to a seasonally adjusted annual rate of 4.10 million units, exceeding economists’ expectations of approximately 4.09 million, as reported by FactSet. This marks a significant 1.7% increase compared to October of last year, signaling a potential turnaround in the sluggish housing market.

The national median sales price also saw a rise, climbing 2.1% year-over-year to $415,200. This is the 28th consecutive month that home prices have increased on an annual basis. Despite the improvement, challenges remain for many potential homeowners due to ongoing affordability issues and economic uncertainties.

The U.S. housing market has faced headwinds since 2022, when mortgage rates began rising from historic lows. Last year, sales of existing homes plummeted to their lowest levels in nearly 30 years. However, the trend has shifted this fall as the average rate on a 30-year mortgage has declined to its lowest point in over a year.

While the positive sales figures offer a glimmer of hope, the affordability crisis continues to impact aspiring homeowners, who are grappling with the effects of soaring home prices over the past few years. As the market evolves, all eyes will be on whether this momentum can be sustained amid lingering economic concerns.

The latest developments will be crucial for both buyers and sellers in the coming months, as the housing landscape remains dynamic. For those looking to buy, this could be a pivotal moment to take advantage of the lowered mortgage rates before a potential shift in the market.