

# U.S. Home Sales Hit 13-Year Low Amid High Mortgage Rates and Inventory Shortage

In October, **U.S. existing home sales** fell to their lowest level in over 13 years, a decline driven by high mortgage rates and a persistent lack of housing inventory. Sales of previously owned homes came in at a seasonally adjusted annual rate of 3.79 million units, marking a 4.1% decrease from September and a 14.6% drop from the same period a year earlier (1, 2, 3, 4, 5, 6).

> "Prospective home buyers experienced another difficult month due to the persistent lack of housing inventory and the highest mortgage rates in a generation," said Lawrence Yun, the chief economist of the National Association of Realtors (1, 2, 3, 4, 5, 6).

The average rate on a 30-year fixed-rate mortgage reached 7.79% in late October, the highest level since November 2000 (3, 5). This surge in mortgage rates, coupled with a shortage of houses, has put a damper on home sales. The number of previously owned homes on the market decreased by 5.7% from the previous year (1, 2, 3, 4, 5, 6).

Despite the decline in sales, home prices continued to rise. The median price of an existing home sold in October was $391,800, a 3.4% increase from a year ago (1, 2, 3, 4, 5, 6). This price increase was observed across all regions of the country.

The housing market dynamics have also led to changes in buyer behavior. Multiple offers and bidding wars were common, with 28% of homes sold going above the listing price (4). Home inspections and appraisal contingencies were often waived due to the lack of inventory (4).

First-time buyers accounted for 28% of sales in October, which is below the 40% considered necessary for a robust housing market (3, 5, 6). All-cash sales represented 29% of transactions, while distressed sales, including foreclosures, made up only 2% (3, 6).

The decline in home sales could have significant implications for the U.S. economy, as the housing market is a key driver of economic growth. The current situation may also impact the Federal Reserve's decisions on interest rates in the coming months.

The differences in perspectives among sources are minimal, with all acknowledging the impact of high mortgage rates and low inventory on home sales. However, the emphasis varies. Some sources highlight the challenges faced by first-time buyers and the prevalence of all-cash sales (3, 6), while others focus on the potential for future home buying given the recent decline in mortgage rates (1).

The identified bias in these sources does not significantly impact the presentation of facts. However, it's crucial to consider the potential influence of these biases on the selection and framing of information. For instance, right-leaning sources like Breitbart and Fox Business may emphasize economic challenges, while left-leaning sources like CNN and The Guardian might focus more on the struggles faced by first-time homebuyers.

In conclusion, the U.S. housing market is currently experiencing a significant slowdown due to high mortgage rates and a lack of inventory. This situation presents challenges for prospective home buyers, particularly first-time buyers, and could have broader implications for the U.S. economy.

<h1>U.S. Home Sales Hit 13-Year Low Amid High Mortgage Rates and Inventory Shortage</h1>
In October, U.S. existing home sales fell to their lowest level in over 13 years, a decline driven by high mortgage rates and a persistent lack of housing inventory. Sales of previously owned homes came in at a seasonally adjusted annual rate of 3.79 million units, marking a 4.1% decrease from September and a 14.6% drop from the same period a year earlier (1, 2, 3, 4, 5, 6).
<blockquote>
"Prospective home buyers experienced another difficult month due to the persistent lack of housing inventory and the highest mortgage rates in a generation," said Lawrence Yun, the chief economist of the National Association of Realtors (1, 2, 3, 4, 5, 6).
</blockquote>
The average rate on a 30-year fixed-rate mortgage reached 7.79% in late October, the highest level since November 2000 (3, 5). This surge in mortgage rates, coupled with a shortage of houses, has put a damper on home sales. The number of previously owned homes on the market decreased by 5.7% from the previous year (1, 2, 3, 4, 5, 6).
Despite the decline in sales, home prices continued to rise. The median price of an existing home sold in October was $391,800, a 3.4% increase from a year ago (1, 2, 3, 4, 5, 6). This price increase was observed across all regions of the country.
The housing market dynamics have also led to changes in buyer behavior. Multiple offers and bidding wars were common, with 28% of homes sold going above the listing price (4). Home inspections and appraisal contingencies were often waived due to the lack of inventory (4).
First-time buyers accounted for 28% of sales in October, which is below the 40% considered necessary for a robust housing market (3, 5, 6). All-cash sales represented 29% of transactions, while distressed sales, including foreclosures, made up only 2% (3, 6).
The decline in home sales could have significant implications for the U.S. economy, as the housing market is a key driver of economic growth. The current situation may also impact the Federal Reserve's decisions on interest rates in the coming months.
The differences in perspectives among sources are minimal, with all acknowledging the impact of high mortgage rates and low inventory on home sales. However, the emphasis varies. Some sources highlight the challenges faced by first-time buyers and the prevalence of all-cash sales (3, 6), while others focus on the potential for future home buying given the recent decline in mortgage rates (1).
The identified bias in these sources does not significantly impact the presentation of facts. However, it's crucial to consider the potential influence of these biases on the selection and framing of information. For instance, right-leaning sources like Breitbart and Fox Business may emphasize economic challenges, while left-leaning sources like CNN and The Guardian might focus more on the struggles faced by first-time homebuyers.
In conclusion, the U.S. housing market is currently experiencing a significant slowdown due to high mortgage rates and a lack of inventory. This situation presents challenges for prospective home buyers, particularly first-time buyers, and could have broader implications for the U.S. economy.

The Guardian

US existing home sales fall to lowest level in more than 13 years

US home sales on pace for the worst year since 1993

Reuters

US existing home sales slump to more than 13-year low in October

CNBC

Home sales fell to a 13-year low in October as prices rose

Fox Business

Existing home sales plummet to lowest level in 13 years as prices rise

Breitbart

Home Sales Plunge to 13-Year Low as Bidenflation Mortgage Rates Crush Market

U.S. Housing Market

Mortgage Rates

Home Sales

Housing Inventory

National Association of Realtors

U.S. existing home sales in October fell to their lowest level in over 13 years, driven by high mortgage rates and a persistent lack of housing inventory.

U.S. Home Sales Hit 13-Year Low Amid High Mortgage Rates and Inventory Shortage

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