Data from the National Association of Realtors (NAR) shows that sales of previously owned homes in the United States dropped to their lowest level in over 14 years in September as buyers continued hesitated under high mortgage rates and cautious pricing. From August, contract closings dropped 1%, to a yearly rate of 3.84 million homes. The number fell short of the 3.88 million pace projected by economists.
Holding off in hopes that mortgage rates, which right now fall in the mid-6% range would drop are homebuyers and sellers. September's rates had dropped to a two-year low before rising as fresh job and inflation data sparked rumors that the Federal Reserve might halt interest rate reductions.
NAR Chief Economist Lawrence Yun voiced hope despite the paltry sales figures, pointing out "more inventory choices for consumers, lower mortgage rates than a year ago, and continued job additions." Offering a 4.3-month supply, the largest since 2019, the number of properties for sale in September climbed 23% year over year to 1.39 million. From a year before, the median house price rose 3%, to $404,500, indicating ongoing market strength even with weaker sales.
