Home sales rose in October as lower mortgage rates brought out buyers — despite the shutdown disruptions

Core Insights - Home sales increased in October due to lower mortgage rates, with existing home sales rising 1.2% from September to a seasonally adjusted annual rate of 4.1 million [1] - Year-over-year, home sales were up 1.7%, indicating a slight recovery in the market [1] Sales Performance - Sales rose 5.3% month-over-month in the Midwest and 0.5% in the South, while remaining flat in the Northeast and declining in the West [1] - Year-to-date, 3.42 million homes have been sold, suggesting a trend towards historically low sales levels similar to the previous year [4] Market Conditions - The federal government shutdown in October affected some potential buyers and disrupted closings for certain government-backed mortgages [2] - Average 30-year mortgage rates dropped to around 6.17%, the lowest in over a year, which likely encouraged buyers to reenter the market [3] Economic Outlook - The National Association of Realtors (NAR) chief economist noted that the years 2023, 2024, and 2025 have experienced historically low home sales activity, despite the recent uptick in October figures [4]