U
S home sales saw a significant boost in October, marking the first annual gain in over three years. The increase was driven by lower mortgage rates and an uptick in available properties on the market. According to the National Association of Realtors, existing home sales rose 3.4% from September to a seasonally adjusted annual rate of 3.96 million.

    This represents a 2.9% gain compared to October last year, the first year-over-year increase since July 2021. Economists had predicted an annual pace of 3.93 million, but sales exceeded expectations. Home prices also continued their upward trend, increasing by 4% from the previous year to $407,200.

    Lawrence Yun, NAR's chief economist, believes that the worst of the downturn in home sales may be over, thanks to rising inventory levels and more transactions. However, with only two months left in the year, existing home sales are on track for their lowest annual total since 1995.

    The US housing market has been struggling since 2022, when mortgage rates began to rise from pandemic-era lows. Existing home sales plummeted to a nearly 30-year low last year as the average 30-year mortgage rate surged to a 23-year high of nearly 8%. While rates have fallen in recent months, they've mostly risen since September, reaching 6.78% last week.