Core Insights - The National Association of Realtors (NAR) reported a slight increase in existing home sales in the U.S. for September, reaching an annualized rate of 4.06 million units, the highest level in seven months, attributed to lower mortgage rates and a slowdown in home price increases [1][3] - The chief economist of NAR, Dr. Lawrence Yun, indicated that the decline in mortgage rates is boosting housing sales, and improving housing affordability is also contributing to the increase [3] Group 1 - Existing home sales in September reached the highest level since February, indicating a potential thaw in the real estate market after a prolonged freeze [1] - The increase in sales is linked to slightly lower mortgage rates, suggesting a positive shift in buyer sentiment [1][3] - Despite the positive trends, some economists believe that mortgage rates need to drop below 6% (closer to 5.5%) to stimulate a stronger rebound in the market [3] Group 2 - The moderate recovery in sales and an increase in available housing inventory suggest a gradual normalization of the second-hand housing market after nearly three years of stagnation [3] - Concerns remain regarding the potential impact of a weak labor market and uncertainties from a possible federal government shutdown on future demand [3]

Core Insights - The pending home sales in the U.S. experienced the largest decline since September 2022, indicating a sluggish spring sales season due to high prices and borrowing costs [1] - The current housing market is heavily influenced by mortgage rates, with a need for rates to decrease from around 7% to closer to 6% to attract buyers back [1] - Although more homeowners are listing their properties, many are waiting for more affordable financing options before selling [1] Summary by Category Market Performance - Pending home sales fell significantly, marking the largest drop in nearly two years, reflecting a weak performance in the spring selling season [1] - The decline in sales is attributed to potential buyers being deterred by high asking prices and borrowing costs [1] Economic Indicators - The National Association of Realtors (NAR) chief economist, Lawrence Yun, emphasized that the market is currently "completely dominated by mortgage rates" [1] - An increase in housing inventory has not translated into higher sales, indicating a disconnect between supply and demand [1] Future Outlook - The housing market is expected to remain subdued until home prices decrease from record levels and mortgage rates become more favorable [1] - Lower mortgage rates are identified as a critical factor for enticing buyers back into the market [1]