US Home Sales Surge 1.2% in October Amid Lower Mortgage Rates

URGENT UPDATE: Sales of previously occupied U.S. homes surged in October, marking the fastest pace since February as homebuyers rushed to capitalize on declining mortgage rates. According to the National Association of Realtors, existing home sales rose by 1.2% from the previous month, reaching a seasonally adjusted annual rate of 4.10 million units. This significant increase reflects a growing confidence among buyers, surpassing economists’ expectations of around 4.09 million units.

The latest data reveals that home sales climbed 1.7% compared to October last year, indicating a shift in the market as affordability improves slightly. The national median sales price also rose, increasing 2.1% from a year earlier to $415,200. This marks the 28th consecutive month of annual price increases, highlighting ongoing demand despite previous market challenges.

The U.S. housing market has struggled since 2022, when mortgage rates began to rise from historic lows, leading to a drastic decline in sales to their lowest levels in nearly three decades. However, the average rate on a 30-year mortgage has recently dipped to its lowest level in over a year, offering some relief to potential buyers who have faced skyrocketing home prices and economic uncertainty.

While the uptick in home sales is a positive sign, affordability remains a critical barrier for many aspiring homeowners. The combination of high prices and lingering doubts about the economy and job market continues to make the dream of homeownership elusive for many.

As the housing market navigates these changes, experts urge potential buyers to act quickly. The decline in mortgage rates may not last, and those looking to buy should consider seizing this moment before conditions shift again.

What happens next is crucial: will the momentum in home sales continue into the coming months, or will economic factors lead to another downturn? Keep watching this space for the latest developments in the evolving housing landscape.