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US Existing Home Sales Fall 5.5% as Mortgage Rates Stay High
Why did US existing home sales fall 5.5%?
US existing home sales fell 5.5% in October to a 3.75 million annual pace, the lowest since August 2010, the Realtors group said Thursday, as high mortgage rates kept buyers away.
Key numbers
| Existing home sales (annual pace) | 3.75M-5.5% vs September |
|---|---|
| Sales vs a year ago | -8.8%Lowest since August 2010 |
| Median existing-home price | $416,700+0.4% YoY |
| Homes for sale / months of supply | 1.59M / 5.1+4.6% YoY inventory |
| 30-year mortgage rate (NAR, October) | 7.33%Other surveys: 7.1%–7.45% |
What happened
US existing home sales fell 5.5% in October to a 3.75 million annual pace, the lowest since August 2010, the Realtors group said Thursday, as high mortgage rates kept buyers away. That is 8.8% fewer sales than a year ago. The typical home sold for $416,700, up only 0.4% from last year. About 1.59 million homes were for sale, enough to last 5.1 months at the current sales pace, the most since late 2015. The Realtors group said mortgage rates are at their highest since 2000, apart from one month in 2023.
Why it matters
US existing home sales are a key health check for the housing market, and October's drop shows high mortgage rates are still keeping many buyers out. Monthly payments stay high, so fewer families are buying even though prices are still edging up. More homes are sitting unsold, and a record 36% of listings have had price cuts, according to Redfin, which could slow price gains.
Who this affects
- MarketbearishMedium impact
- Homebuilder ETF fell 1.75%; negative for housing-linked investors.
- CompanybearishMedium impact
- Agents and lenders see fewer deals; negative for earnings.
- CompetitorsmixedLow impact
- Sellers face more competition as inventory rises to 1.59M.
- IndustrybearishHigh impact
- Housing industry faces its weakest sales pace since 2010.
US vs Northeast, Midwest, South, West
| United States— | 3.75M | -5.5% | -8.8% |
|---|---|---|---|
| Northeast— | 470K | 0.0% | -4.1% |
| Midwest— | 900K | -3.2% | -8.2% |
| South— | 1.73M | -6.5% | -8.0% |
| West— | 650K | -9.7% | -14.5% |
As of 2026-11-12
How we got here
NAR reports September sales up 1.5%, to a 3.99M pace in its first estimate.
NAR reports October sales down 5.5% to 3.75M, lowest since August 2010.
Homebuilder ETF XHB falls 1.75% and the S&P 500 slips 0.38% on the data.
What to watch
- NAR's November existing-home sales report, to see if the slide continues2026-12
- Weekly 30-year mortgage rates, quoted near 7.1% on Thursday, versus 7.33% October averageweekly
- Pending home sales, a guide to future closings, after a record-low 66.0 September reading (per)Q4 2026
Educational content only. Not investment advice.
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