U.S. Existing Home Sales Rise in October

In October, U.S. sales of previously occupied homes rose by 3.4% from September, reaching an annualized rate of 3.96 million units, marking the first annual gain in over three years. The increase is attributed to a drop in mortgage rates, which fell from 6.6% in August to 6.11% by mid-September, encouraging homebuyers after a slow summer. Year-over-year sales rose by 2.9%, with the national median home price also increasing by 4% to $407,200. Inventory levels have seen a significant rise, with 1.37 million unsold homes available at the end of October, translating to a 4.2-month supply—still below the balanced market threshold of 5 to 6 months. Experts suggest that the worst of the downturn in home sales may be over, with increasing inventory potentially leading to more transactions. However, challenges remain for first-time buyers due to elevated mortgage rates and tight supply conditions.