US existing home sales rise in September; higher mortgage rates dim outlook
SPY•Existing home sales rose 1.5% in September to a 3.99 million annual rate, while August’s pace was revised lower. Inventory climbed to 1.60 million units and the median price rose 1.3% year over year to $417,500, as the 30-year mortgage rate averaged 7.40%.
1. Sales and inventory
Existing home sales increased 1.5% in September to a seasonally adjusted annual rate of 3.99 million units, but remained below 4 million for a second consecutive month. August’s decline was revised to 3.2% from 2.0%, and sales were down 2.2% from a year earlier. Inventory rose 1.9% to 1.60 million units, its highest level since November 2019.
2. Prices and borrowing costs
The median existing-home price rose 1.3% from a year earlier to $417,500, the highest for any September. The 30-year fixed mortgage rate averaged 7.40% last week, up from 7.28% the prior week. First-time buyers accounted for 31% of sales, while sales of homes priced at $1 million and above increased 4.1% year over year.
