Existing-Home Sales Rise in October as Lower Rates Pull Buyers Back

U.S. existing-home sales increased in October, even with the government shutdown disrupting parts of the economy. According to the National Association of Realtors (NAR), sales climbed 1.2% from the previous month, showing how lower mortgage rates encouraged more buyers to act.

Regionally, sales rose in the Midwest and South, stayed unchanged in the Northeast, and declined in the West. Compared to last year, sales were also up in most regions except the West, where high prices and supply challenges continue to hold activity down.

NAR Chief Economist Lawrence Yun said buyers likely took advantage of easing mortgage rates during the month, and added that slowing rent growth should help cool inflation, giving the Federal Reserve more room to continue cutting interest rates.

“This will help bring more homebuyers into the market since the Fed rate has an indirect impact on mortgage rates,” Yun explained.

In September, NAR had also reported a 1.5% month-over-month increase, suggesting a gradual but steady rise in buyer activity this fall.

Key October Numbers

NAR’s October report highlighted the following:

• 4.1 million annualized sales
• $415,200 median price (+2.1% year-over-year)
• 4.4 months of inventory (up 0.4 YoY)
• Sales include single-family homes, condos, and co-ops

This broad view captures conditions across all major U.S. regions and property types.

Affordability and Economic Uncertainty Still Weigh on Buyers

Lisa Sturtevant, Chief Economist at Bright MLS, said the recent uptick in sales is encouraging but warned that the housing market remains under pressure.

“More inventory and slightly lower rates have helped bring buyers back, but affordability and uncertainty are still the biggest challenges,” she said. Sturtevant expects 2025 to finish with only a small improvement in total sales compared to last year.

Looking to 2026, she said the key question is which force will prevail lower rates or broader economic concerns.

“There is optimism, but consumers remain cautious about their finances. That could limit how much sales actually increase,” she explained.

Home Sales Remain Low by Historical Standards

Despite the monthly rise, overall home sales are still near record lows. Bankrate analyst Jeff Ostrowski pointed out that the current annual pace of 4.1 million sales is far below the levels seen in recent years.

• During the pandemic boom, sales topped 6 million annually
• Before the pandemic, the long-term average was just over 5 million

Ostrowski noted that prices remain elevated, even though the pace of growth has slowed. October’s median price of $415,200 was up 2.1% from last year and marked the highest October price on record.

Homes also took slightly longer to sell, averaging 34 days on market. Meanwhile, first-time buyers made up only 32% of sales, up from 27% last year but still well below historical norms.

Housing Recession Still Dragging on Sales Volumes

According to Ostrowski, the housing recession that began in 2023 continues to weigh on transaction volume.

“Sales have been muted for three years now,” he said. “Home values are holding firm nationally, but sales won’t pick up in a big way unless home prices fall or mortgage rates drop sharply — and neither seems likely right now.”

Bottom Line

October brought a modest improvement to existing-home sales, supported by easing mortgage rates and slightly better inventory. But affordability challenges, economic uncertainty, and stubbornly high home prices remain major obstacles. Analysts expect improvement in 2026, but caution against expecting a sudden surge in sales or listings. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.