M
ortgage rates easing at summer’s close lifted home sales, though the boost may be brief. In October, existing‑home sales rose 1.2% from September to 4.1 million units on a seasonally adjusted, annualized basis, per the National Association of Realtors. Year‑over‑year sales climbed 1.7%. These figures reflect closings, so contracts signed in August and September are included; the October shutdown may affect closings that require flood insurance or USDA loans, but not contract signings.

    During the contract‑signing window, the 30‑year fixed mortgage rate dipped from 6.63% in August to 6.13% mid‑September, then rebounded to 6.37% by month’s end, now standing at 6.36% (Mortgage News Daily). Inventory fell to 1.52 million homes, a 0.7% drop from September, yet still 11% above last year’s level, leaving a 4.4‑month supply—still considered tight.

    Median sale price hit $415,200 in October, up 2.1% from the previous October and marking the 28th straight month of annual gains. “Home buyers benefit from lower rates and a slower season, yet affordability remains a hurdle that keeps sales low,” said Danielle Hale, chief economist at Realtor.com. “First‑time buyers now account for 32% of sales, up from 27% a year ago, but challenges differ by region.” Lawrence Yun, chief economist for the Realtors, noted that first‑time buyers face supply shortages in the Northeast and high prices in the West, while the Midwest and South enjoy ample affordable inventory.

    Sales growth is strongest at the upper end: homes above $1 million rose 16% YoY, and those between $750k and $1 million grew 10%. In contrast, sales of $100k–$250k homes increased only 1%, and those below $100k fell 3%. Homes lingered longer on the market—34 days in October versus 29 days in September.

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