Existing Home Sales declined in September
|Summary
Affordability challenges continue to weigh on the housing market
Scarce supply, high home prices and elevated mortgage rates continue to constrain housing activity. Total existing home sales declined 1.0% during September, falling short of expectations for a modest gain. The 3.84 million-unit pace hit during the month marks the slowest pace since 2010 in the aftermath of the housing bust and Great Recession.
The monthly fall occurred despite a drop in 30-year mortgage rates, which eased to nearly 6% in September alongside a pivot to less-restrictive monetary policy from the Federal Reserve. However, according to Mortgage New Daily, mortgage rates since have shot back up and are now closer to 7% amid new uncertainty on where the federal funds target rate will eventually settle. In addition to the recent leg-up in mortgage rates, the negative knock-on impacts of Hurricane Milton and Helene will likely weigh on residential activity in the near-term.
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