US existing home sales hit a 16-year low in October as buyers were driven away by record-high mortgage rates and rising inflation. Sales of already built units fell to 3.75 million, down 8.8% from last year, and down 5.5% from September's downwardly revised pace of 3.97 million. The median existing-home sales price increased to $416,700.
Mortgage Rates and the Fed
The 30-year mortgage rate, the most commonly used rate in home loans, is hovering at about 7.18%, not far from its 2023 high of 7.79%. During the pandemic, average mortgage rates were just above 3%. The average 30-year fixed-rate mortgage averaged 7.33% in October, up from 6.86% in September, per Freddie Mac, and hit a three-year high of 7.40% on Oct. 8.¹²³
Mortgage rates had been declining in 2024 and 2025, with the 30-year rate falling below 6% for the first time in February 2026. The rate topped 7% for the first time in nearly two years in September. Lawrence Yun said home buying is difficult when mortgage rates have climbed to their highest levels since 2000, aside from a single month in 2023.¹²³
The US Federal Reserve hiked interest rates in September for the first time since 2023. Rates currently sit at a range of 3.75% to 4%. The central bank is poised to raise rates again next month to combat heightened inflation, which went up more than expected in October.¹²³
Mortgage rates had been declining in 2024 and 2025, with the 30-year rate falling below 6% for the first time in February 2026.
Sales and Prices by Region
October is the third month in a row that the annual sales pace has remained below 4 million. The latest sales tally fell short of the 3.8 million pace economists were expecting, according to FactSet. Lawrence Yun said home sales fell to their lowest level since August 2010.¹²³
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Read More →Sales fell annually across every price tier in October, even in the $1 million-and-up market. Month-over-month sales declined by the widest margin in the West (-9.7%), followed by South (-6.5%), and Midwest (-3.2%), but held steady in the Northeast. Year-over-year sales slid in all four regions, with the West experiencing the sharpest pullback at 14.5%.¹²³
The median sales price reached $416,700 in October, up 0.4% from a year ago, the highest for the month of October, based on data going back to 1999. Home prices have risen on an annual basis for 40 months in a row.¹²³
Inventory and Affordability
Inventory expanded by 1.3% month over month and 4.6% year over year to 1.59 million housing units, a seven-year high. This translates into 5.1 months' supply, the highest level in 11 years. There were 1.59 million unsold homes at the end of last month, the highest level of unsold inventory on the market since November 2019.¹²³
Unsold home inventory rose 1.3% last month from September and climbed 4.6% from October last year. October's month-end inventory translates to a 5.1-months' supply at the current sales pace, the largest since November 2015. The national housing affordability index registered at 100.7, down from 107.3 a year ago.¹²³
Inventory and Affordability Inventory expanded by 1.3% month over month and 4.6% year over year to 1.59 million housing units, a seven-year high.
The share of first-time homebuyers shrunk from 31% in September to 29% in October. Cash buying increased from 27% in September to 29% in October. The number of foreclosure sales remains historically low at 2% of all transactions.¹²³
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Read More →Broader Housing Trends
Pending home sales, or the number of contracts that have been signed before closing, reached their lowest levels in the NAR's history in September. Affordability and cost-of-living concerns played an outsized role in the midterm elections that gave Democrats control of Congress next year.¹²³
Growth in median rent across the US outpaced inflation, according to the latest census data. The home-ownership rate in the US has stagnated since 2021. Danielle Hale said she does not think this is a new normal for home sales.¹²³
Housing Slowdown Signals Mortgage Career Demand
If you work in mortgage lending, real estate, or housing finance, this market is a direct signal. Sales at a 16-year low and the slowest pace since August 2010 mean fewer transactions, so origination roles and commission-based positions face reduced volume. The rise in cash buying to 29% from 27% suggests a shift toward wealthier buyers, so skills in serving cash-heavy clients or luxury segments may hold more value than volume-driven retail lending.¹²³
Housing Slowdown Signals Mortgage Career Demand If you work in mortgage lending, real estate, or housing finance, this market is a direct signal.
For those considering a move into housing-related fields, note the affordability index dropped from 107.3 to 100.7, and first-time buyer share fell to 29%. That points to weaker demand from younger buyers, so roles in first-time buyer programs or affordable housing initiatives may face headwinds. However, inventory at a seven-year high and 5.1 months' supply means more listings to manage, potentially boosting demand for property managers, listing agents, and staging services. Plan for a slower sales cycle, not a collapse.¹²³
Sources
Written by Career Ahead AI. AI can make mistakes, so verify key facts. Report errors to support@careeraheadonline.com
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