U.S. home sales saw a modest but notable rebound in October, climbing to their fastest pace since February as easing mortgage rates helped bring more buyers off the sidelines.
According to The Associated Press, the National Association of Realtors (NAR) reported Thursday that existing home sales rose 1.2% from the previous month, reaching a seasonally adjusted annual rate of 4.10 million.
That figure slightly beat economists’ expectations and marked a 1.7% increase compared with October last year.
Some sales that would typically have closed earlier may have been delayed by the recent federal government shutdown, potentially affecting October’s totals.
Even with the uptick, home prices continued their relentless climb. The national median sales price hit $415,200 — a 2.1% jump from a year earlier and the highest October price on record going back to 1999. Prices have now risen annually for 28 consecutive months.
The broader housing market, however, remains weighed down by the fallout from rising interest rates that began in 2022. Last year’s sales sank to their lowest level in nearly three decades, and the market has struggled to regain momentum.
This fall brought some relief as the average rate on a 30-year mortgage dipped to its lowest level in more than a year. Still, affordability remains a steep hurdle for many would-be buyers grappling with years of soaring prices and economic uncertainty.
As a result, existing home sales have hovered around a 4-million annual pace since 2023 — far below the historical norm of about 5.2 million. NAR chief economist Lawrence Yun said reversing that trend will require a major increase in available homes and further easing in mortgage rates.
“I don’t think we will get there next year,” Yun said. “We need 1 million more home sales to get us back to normal. I’m only looking at an additional half-million home sales next year.”
The tight supply of affordable homes continues to hit first-time buyers hardest. They made up 34% of October’s sales, below the historical average of 40%. An annual NAR survey found they represented an all-time low of 21% of purchases between July 2024 and June 2025, with their average age climbing to a record-high of 40.
The Trump administration recently announced it is considering backing a 50-year mortgage to help address affordability concerns, though economists and policymakers quickly voiced skepticism about the proposal.
Homes sold in October were largely contracted in August and September, when mortgage rates ranged from 6.63% to 6.26%, according to Freddie Mac. Rates declined further in October to 6.17%, the lowest since early October 2024, before edging up again in recent weeks.
Buyers in the market today have more options than they did a year ago. Inventory at the end of October stood at 1.52 million homes, up nearly 11% from a year earlier but still far below the roughly 2 million typical before the pandemic. That supply translates to 4.4 months of inventory — short of the 5 to 6 months considered a balanced market.
Homes are also staying on the market longer. Properties averaged 34 days before selling last month, giving buyers slightly more breathing room and pressuring sellers eager to close to sweeten their deals.
For now, the market remains caught between improving mortgage rates and stubborn affordability challenges — a tension that continues to define the post-pandemic housing landscape.
