Existing-home sales in the U.S. collapsed in October to their lowest level in over 16 years, as skyrocketing mortgage rates and stubbornly high prices pushed buyers out of the market. The National Association of Realtors reported Thursday that sales dropped 5.5% from September to a seasonally adjusted annual rate of just 3.75 million units—the weakest pace since the housing market was still reeling from the 2008 financial crisis.
Mortgage Rates Hit Buyers Hard
The average 30-year fixed mortgage rate jumped to 7.33% in October, up sharply from 6.86% the previous month and 6.25% a year ago, according to Freddie Mac data cited by NAR. These completed sales mostly reflect contracts signed in September, meaning the market hasn’t yet felt the full brunt of October’s rate spike.
Prices Remain Stubbornly High
Buyers found little relief on pricing, with the national median existing-home price climbing 0.4% year-over-year to $416,700. Inventory levels actually increased 1.3% from September to 1.59 million homes available—a 5.1 month supply at current sales pace—but the extra selection did nothing to offset the affordability crisis.
Regional Breakdown Shows Widespread Pain
The sales decline hit nearly every corner of the country, with the West suffering the steepest drop at 9.7%. The South saw sales fall 6.5%, while the Midwest declined 3.2%. Only the Northeast held steady. The pullback affected all price brackets, with homes between $500,000-$750,000 seeing a particularly sharp 12.2% annual sales decline.
Distressed transactions like foreclosures remained negligible at just 2% of sales, indicating this downturn stems from economic pressures rather than financial distress among homeowners. With mortgage rates continuing to climb in November, analysts warn the housing slump may deepen further in coming months.
Source: www.breitbart.com — https://www.breitbart.com/economy/2026/11/12/existing-home-sales-plunge-to-16-year-low-as-mortgage-rates-climb/