US Existing-Home Sales Drop Back Again With Mortgage Rates at 7%

The U.S. housing market continues to grapple with the impact of rising mortgage rates, with existing-home sales dropping back again in recent months. According to the National Association of Realtors (NAR), existing-home sales fell by 1.4% in September 2024, marking the third consecutive month of decline. This downward trend is largely attributed to the increase in mortgage rates, which have climbed to 7% in recent months.

The rise in mortgage rates has made homeownership less affordable for many Americans, particularly first-time buyers. As of October 2024, the median home-sale price in the U.S. was $407,200, a year-over-year increase of 4.0%. This price increase, coupled with higher mortgage rates, has priced out many potential buyers, leading to a decrease in existing-home sales.



Several factors contribute to the decline in existing-home sales and influence the overall housing market dynamics. Higher mortgage rates have made homeownership less affordable, while limited inventory levels have made it more difficult for buyers to find suitable homes. Additionally, home prices have continued to rise, adding to affordability pressure. Economic uncertainty and job market volatility have also contributed to the decline in existing-home sales.

Despite these challenges, there is some optimism for the future of the housing market. As mortgage rates decrease and inventory levels improve, the market may begin to recover, with total home sales expected to increase by 9% in 2025 compared to 2024. However, the housing market remains a challenging environment for buyers, with affordability concerns and limited inventory levels persisting.

In conclusion, the U.S. housing market continues to face headwinds from rising mortgage rates and limited inventory levels. While there is some optimism for the future, the market remains a challenging environment for buyers, with affordability concerns and limited inventory levels persisting. As the market evolves, it will be important for buyers and sellers to stay informed about the latest trends and developments in the housing market.