US Existing Home Sales Rise Slightly Amid Record Prices

Existing home sales in the United States rose 1.5% in September to a seasonally adjusted annual rate of 3.99 million units, according to the National Association of Realtors. This monthly increase was partly attributed to a downward revision of August sales data. Despite the gain, sales fell 2.2% compared to September of the previous year and remained below the historical norm of 5.2 million units.

The market faces significant pressure from rising borrowing costs and record-high valuations. The median sales price reached an all-time September high of $417,500, a 1.3% increase from a year ago. Simultaneously, the average 30-year fixed mortgage rate hit 7.4%, the highest level since November 2023. These rates have climbed since February 2026, driven by inflation and Treasury yield increases linked to the war between the United States and Iran.

Inventory levels rose 1.9% to 1.6 million units at the end of September, the highest level since November 2019, creating a 4.8-month supply. This increase in unsold homes stems from weak demand as buyers struggle with costs. Adding to the pressure, the Federal Reserve System recently raised its benchmark interest rate by 25 basis points to a range of 3.75%-4.00%.