U.S. existing home sales edged higher in October as some buyers moved quickly to capitalize on a recent dip in mortgage rates, even as elevated prices and a softening labor market continued to limit broader demand.
The National Association of Realtors reported that resales rose 1.2% from September to a seasonally adjusted annual pace of 4.10 million homes. The increase landed slightly above economists’ expectations and left sales 1.7% higher than a year earlier.
NAR’s chief economist Lawrence Yun attributed the gain to buyers responding to lower borrowing costs, noting that demand held up even amid the disruptions associated with a federal government shutdown.
Mortgage rates had been drifting lower after the Federal Reserve restarted interest-rate cuts, according to Freddie Mac data. More recently, that downward momentum has eased as Fed officials signaled less appetite for another cut in the next policy meeting, while uneven job growth and rising unemployment have kept many potential buyers on the sidelines.
Affordability remains the defining strain. With housing costs still high, political debate has intensified around ways to make homeownership more attainable. President Donald Trump floated the idea of a 50-year mortgage, though critics—including some housing analysts—argued that stretching loans that long would raise lifetime interest costs and delay equity-building. NAR has also highlighted how delayed homeownership has become: it estimates the median first-time buyer is now 40, compared with typical first-time buyers in their late 20s during the 1980s.
On the supply side, listings improved but remain historically tight. Existing-home inventory climbed 10.9% from a year earlier to 1.52 million units, yet the total is still below pre-pandemic norms. The median existing-home price increased 2.1% from a year ago to $415,200. At October’s sales pace, the available supply equaled about 4.4 months, up from 4.1 months a year earlier.
The buyer mix offered mixed signals. First-time buyers represented 32% of October purchases, up from 27% a year earlier, but still below the roughly 40% share many economists and agents associate with a healthier, more balanced market. All-cash deals accounted for 29% of transactions, also higher than a year ago, while distressed sales—including foreclosures—held steady at 2%.
