Home Sales in October Plummet to 16-Year Low

The National Association of Realtors reported Thursday that total existing-home sales, including single-family homes, townhomes, condominiums and co-ops, dropped to a seasonally adjusted annual rate of 3.75 million in October, a 5.5% decline from September's revised 3.97 million and an 8.8% drop from October 2025. The figure missed economists' forecast of 3.85 million and marks the lowest sales pace since August 2010, when the market was still recovering from the 2008 financial crisis, according to NAR and multiple outlets including AP News, Bloomberg, Yahoo Finance and The Wall Street Journal.

NAR Chief Economist Lawrence Yun attributed the slump to mortgage rates that have climbed to their highest levels since 2000, aside from a single month in 2023. "Home buying is difficult when mortgage rates have climbed to their highest levels since 2000, aside from a single month in 2023," Yun said. "As a result, home sales fell to their lowest level since August 2010." Mortgage rates crossed 7% in September, and because homes typically go under contract a month or two before closing, October sales reflect buyers who locked in rates above that threshold, Yahoo Finance reported.

Sales declined month-over-month in the Midwest, South and West while holding steady in the Northeast, NAR said. Year-over-year sales fell in all four regions, with the West posting a particularly steep 14.5% decline and the Northeast dropping 4.1%, according to Yahoo Finance. Despite the slowdown, Yun noted that the 88 million homeowners nationwide remain in a comfortable financial position due to sizable housing wealth accumulation, and distressed property sales remain historically low at just 2% of transactions. Kitco reported that spot gold fell to $3,864.78 an ounce, down 3.08% on the day, following the weaker-than-expected housing data.

Yun warned that the dismal October data and persistently elevated mortgage rates mean 2026 home sales are likely to come in below 2025's level of 4.06 million, reaching a more than three-decade low. However, he added that "based on the current underwhelming home sales pace at a time of consistent job growth, there could be sizable pent-up demand if mortgage rates decline."