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, above economists’ 3.95 million forecast, while sales fell 2.2% from a year earlier. Inventory increased to 1.60 million units, and the average 30-year mortgage rate reached 7.40%.
1. Sales edge higher
Existing home sales rose 1.5% in September to a seasonally adjusted annual rate of 3.99 million units, above economists’ forecast of 3.95 million. Sales were down 2.2% from a year earlier. Lawrence Yun, the National Association of Realtors’ chief economist, said August and September were the slowest months for sales this year, despite September’s monthly gain.
2. Rates and inventory
The average 30-year fixed mortgage rate was 7.40% last week, up from 7.28% the prior week and its highest level since November 2023. Existing-home inventory rose 1.9% to 1.60 million units, the highest since November 2019. At September’s sales pace, supply would last 4.8 months, unchanged from August.
3. Prices and buyers
The median existing-home price rose 1.3% from a year earlier to $417,500, a September record. First-time buyers made up 31% of sales, while individual investors or second-home buyers accounted for 20% of transactions.
