October home sales plunged 5.5%, bringing the seasonally adjusted annual rate to 3.75 million
Existing home sales dropped to a 16-year low in the US in October, marking the slowest pace since August 2010, according to new data from the National Association of Realtors (NAR) on Thursday.
October sales plunged 5.5%, bringing the seasonally adjusted annual rate to 3.75 million.
Activity fell across the Midwest, South, and West, though the Northeast remained steady.
The housing downturn follows a sharp reversal in borrowing costs. After falling below 6% in February 2026, the average 30-year mortgage rate surged back to roughly 7.18%—near its 2023 peak of 7.79%.
With mortgage rates hovering above 7%, borrowers are unlikely to see significant relief in the near future. Persistent inflation, including a 0.4% increase in October, and the Federal Reserve’s September decision to raise benchmark rates to 3.75%-4% have added to the pressure, with another hike anticipated.
Owning a home in the US is becoming increasingly unaffordable to the average American.