S
eptember saw a rebound in sales of existing U.S. homes as mortgage rates fell and inventory rose. The National Association of Realtors reported a 1.5% month‑to‑month increase, bringing the seasonally adjusted annual rate to 4.06 million units—the fastest pace since February. Year‑over‑year sales were up 4.1%, slightly below the 4.07 million forecasted by FactSet.

    The national median sales price climbed 2.1% from a year earlier to $415,200, marking the 27th straight month of gains and the highest September median price on record since 1999. The market has been in a slump since 2022, when rates began climbing from historic lows, and last year’s sales hit a 30‑year low.

    Mortgage rates began easing in July, with the average 30‑year rate ranging from 6.75% to 6.56% in July and August. The decline accelerated in September, dropping to 6.27% last week, a move that helped boost buyers’ purchasing power. However, borrowing costs remain high, and the median price has risen 53% over the past six years, limiting affordability for many.

    Inventory has improved, with 1.55 million unsold homes at the end of September—a 1.3% increase from August and 14% higher than September last year—still below the roughly 2 million homes for sale that were typical before the pandemic. The persistent shortage, especially of affordable units, continues to pressure first‑time buyers, who accounted for 30% of sales last month compared with 40% historically.