US homes sales rose in October as homebuyers seized on declining mortgage rates

Core Insights - Sales of previously occupied U.S. homes increased by 1.2% in October, reaching a seasonally adjusted annual rate of 4.10 million units, the fastest pace since February [1] - The national median sales price rose to an all-time high of $415,200, marking a 2.1% increase from the previous year [2] - The U.S. housing market has been in a slump since 2022, with home sales at their lowest level in nearly 30 years last year [2] Sales Performance - Existing home sales rose 1.7% compared to October last year, surpassing economists' expectations of approximately 4.09 million units [1] - Despite sluggish sales earlier in the year, a decline in the average rate on a 30-year mortgage to its lowest level in over a year has provided a boost [3] - Sales have remained around a 4-million annual pace in 2023, significantly below the historical average of 5.2 million [3] Market Conditions - A significant increase in the number of homes on the market and a more meaningful decline in mortgage rates are necessary to close the sales gap [4] - The average rate on a 30-year mortgage declined to 6.17% in October, the lowest since October 2024, but has since increased [4] - There were 1.52 million unsold homes at the end of last month, a decrease of 0.7% from September but an increase of 10.9% from October last year [5] Inventory Insights - The current inventory remains well below the pre-COVID-19 pandemic level of approximately 2 million homes for sale [5] - The market is still considered tight on inventory compared to pre-COVID conditions [6]