US Existing Home Sales Drop 5.5% to 3.75 Million, Lowest Since 2010
Updated
Updated · Reuters · Nov 12
US Existing Home Sales Drop 5.5% to 3.75 Million, Lowest Since 2010
3 articles · Updated · Reuters · Nov 12
Summary
October existing home sales fell 5.5% to a 3.75 million annualized rate, undershooting forecasts and marking the weakest resale pace since August 2010.
Mortgage rates above 7% kept buyers sidelined after the 30-year fixed rate climbed as high as 7.40% in September; NAR said affordability remains strained even with this week's dip to 7.11%.
Prices stayed elevated despite weaker demand, with the median existing home price rising 0.4% from a year earlier to $421,900, the highest ever for October.
Inventory rose 1.3% to 1.59 million homes and supply reached 5.1 months, but first-time buyers made up just 29% of purchases versus 32% a year earlier.
The housing slump contrasts with a still-resilient labor market: weekly jobless claims rose 9,000 to 200,000, a level economists say remains consistent with low layoffs.