U
S home sales accelerated in November to their fastest pace since March, despite higher mortgage rates. Existing home sales rose 4.8% from October to a seasonally adjusted annual rate of 4.15 million, exceeding economists' expectations.

    Home prices continued to rise, increasing by 4.7% annually to $406,100, marking the 17th consecutive month of growth. However, sales are still below last year's pace, which was a nearly 30-year low. The US housing market has been in a slump since 2022, when mortgage rates began to climb.

    The shortage of homes for sale has contributed to rising prices, with national prices up 50% since 2019. Mortgage rates have eased slightly this year but remain high, averaging around 6.6% last week. Homebuyers who signed contracts in September and October, when rates were more attractive, likely closed on their purchases in November.

    The outlook for mortgage rates is uncertain heading into next year, with many economists predicting rates will ease but remain above 6%. The availability of homes has improved, with a 3.8-month supply at the current sales pace, down from last year's 4.2-month pace. However, this still falls short of the traditional balanced market of 5-6 months.

    "We are seeing sales increase because of this increase in inventory," said Lawrence Yun, NAR's chief economist. Despite the improvement, the supply of homes remains about 30% below pre-pandemic levels.