US existing-home sales rose 1.5% in September

Existing-home sales in the United States rose 1.5% in September from August, reaching a seasonally adjusted annual rate of 3.99 million, the National Association of Realtors reported Tuesday. The increase followed a downward revision to August sales, while September sales remained 2.2% below the same month last year. The annualized pace was below 4 million for a second consecutive month. The median price of an existing home was $417,500, up 1.3% from a year earlier and the highest September figure in the association’s records. Inventory also increased: 1.60 million homes were available at month’s end, up 1.9% from August and 4.6% year over year. At September’s sales pace, that represented 4.8 months of supply, unchanged from August. The figures point to a market with more homes for sale but continued affordability pressures. The average 30-year fixed mortgage rate reached 7.40% for the week ending October 8, its highest level since November 2023, according to Freddie Mac. It had averaged 7.28% the previous week. Higher borrowing costs can limit the number of buyers able to qualify, while rising prices add to the cost of purchasing a home.