US Home Sales Hit 16-Year Low: What 7.33% Mortgage Rates Mean for Buyers
US existing-home sales fell 5.5% in October to a 3.75 million pace, the lowest since 2010, as 7.33% mortgage rates froze buyers even as prices kept rising.
Image: Wikimedia Commons / shankar s.
WASHINGTON — Sales of previously owned homes in the United States fell in October to their slowest pace in more than 16 years, the National Association of Realtors reported on Thursday, as mortgage rates climbed to their highest levels since 2000.
Existing-home sales dropped 5.5 percent from September to a seasonally adjusted annual rate of 3.75 million, the weakest reading since August 2010, and were down 8.8 percent from October last year. The median existing-home price rose 0.4 percent over the year to $416,700.
Key takeaways
- Sales fell 5.5 percent in October to a 3.75 million annual pace, the lowest since August 2010.
- The median price rose 0.4 percent from a year ago to $416,700, the 40th straight month of gains.
- The average 30-year fixed mortgage was 7.33 percent in October, according to Freddie Mac.
- Inventory stood at 1.59 million homes, a 5.1-month supply; first-time buyers were 29 percent of sales.
Why US Home Sales Fell to a 16-Year Low
The main cause was the cost of borrowing. “Home buying is difficult when mortgage rates have climbed to their highest levels since 2000, aside from a single month in 2023. As a result, home sales fell to their lowest level since August 2010,” said Lawrence Yun, chief economist at the National Association of Realtors.
High rates have locked the market from both sides: owners holding mortgages near 3 percent have little reason to sell, while buyers face payments far higher. The association’s Housing Affordability Index fell to 100.7 in October from 107.3 a year earlier, and first-time buyers made up just 29 percent of sales, down from 32 percent a year ago. Yun said demand could return quickly if rates fall.
What 7.33% Mortgage Rates Mean for Homebuyers
The 30-year fixed mortgage averaged 7.33 percent across October, according to Freddie Mac, up from 6.86 percent in September and 6.25 percent a year earlier. The weekly survey has since shown relief: the rate fell for a fourth straight week to 7.11 percent, its lowest in seven weeks. Mortgage rates have now fallen for four consecutive weeks.
Rates climbed again this autumn after the Federal Reserve raised its benchmark rate in September for the first time since 2023, to a range of 3.75 percent to 4 percent. Hot inflation data has since pushed traders to expect another rise at the Federal Reserve’s December meeting. Consumer prices rose 0.4 percent in October, and Federal Reserve Governor Christopher Waller has backed a December rate rise.
US Home Sales by Region in October 2026
Sales fell in three of four regions in October and were flat in the fourth. The West fell hardest, down 9.7 percent from September and 14.5 percent from a year earlier, while the South fell 6.5 percent and the Midwest 3.2 percent. The Northeast held steady at 470,000, though sales there were still down 4.1 percent from last October.
| Region | Sales | vs Sept | vs last year | Median price |
|---|---|---|---|---|
| Northeast | 470,000 | Unchanged | -4.1% | $519,600 |
| Midwest | 900,000 | -3.2% | -8.2% | $324,300 |
| South | 1.73 million | -6.5% | -8.0% | $360,900 |
| West | 650,000 | -9.7% | -14.5% | $624,300 |
The Northeast median rose 3.2 percent to $519,600 and the Midwest median rose 1.5 percent to $324,300. The South was the only region where the median fell, down 0.4 percent to $360,900, while the West median was unchanged at $624,300. Single-family sales fell 5.8 percent to 3.41 million; condos fell 2.9 percent to 340,000.
Frequently Asked Questions
How low did US home sales fall in October 2026?
Existing-home sales fell 5.5 percent in October to an annual rate of 3.75 million, the slowest pace since August 2010.
Why are US home sales at a 16-year low?
Mortgage rates are the main cause. The average 30-year fixed rate was 7.33 percent in October, according to Freddie Mac, its highest since 2000, pricing many first-time buyers out of the market.
What is the current 30-year mortgage rate?
Freddie Mac’s latest weekly survey put the 30-year fixed mortgage at 7.11 percent, down for a fourth straight week; the October monthly average was 7.33 percent.
Will US home prices fall if sales keep dropping?
Not necessarily. The median price rose 0.4 percent from a year ago to $416,700 in October because inventory remains tight at 1.59 million homes. Prices are most likely to ease only if supply grows or rates fall.
November sales figures are due next month, and the Federal Reserve’s December meeting is the next event that could move mortgage rates.
