Sales of built units fell to 3.75m in October, down by 8.8% from last year, with mortgage rates at nearly three-year high
US existing home sales hit a 16-year low in October as buyers were driven away by record-high mortgage rates and rising inflation, according to new data released on Wednesday.
Sales of already built units dropped to 3.75m in October, down by 8.8% from last year, the National Association of Realtors (NAR) reported. The median existing-home sales price increased slightly to $416,700. Declines in sales were seen in the midwest, south and west, though sales in the north-east held steady.
Mortgage rates had been steadily declining in 2024 and 2025, with the 30-year rate falling below 6% for the first time in February 2026. But increasing inflation and higher interest rates amid the Iran war have pushed rates back up to a nearly three-year high.
The 30-year mortgage rate, which is the most commonly used rate in home loans, is now hovering at about 7.18%, not far from its 2023 high of 7.79%. During the pandemic, average mortgage rates were just above 3%.
“Home buying is difficult when mortgage rates have climbed to their highest levels since 2000, aside from a single month in 2023,” Lawrence Yun, chief economist at the NAR.
