Existing-home sales unexpectedly rose in September, increasing 1.5% from August to a seasonally adjusted annual rate of 3.99 million, according to the National Association of REALTORS®. The gain beat economists’ expectations, but sales remained below their year-earlier level. More homes were available, while higher mortgage rates continued to weigh on affordability and buyer demand.
Key takeaways
- Sales climbed 1.5% month over month to an annual pace of 3.99 million, but fell 2.2% year over year.
- Inventory reached 1.6 million homes, equal to a 4.8-month supply.
- The median existing-home price rose 1.3% year over year to $417,500.
- September’s average 30-year mortgage rate was 6.86%, up from 6.67% in August.
A modest monthly gain amid a slow year
The September increase surpassed expectations for sales to fall from August’s 3.98 million annual rate to 3.96 million. Still, the year-over-year decline and weak activity in recent months temper the positive monthly result. NAR Chief Economist Lawrence Yun said August and September were the slowest months for sales so far this year, despite September’s seasonally adjusted gain.
Inventory and prices
The number of homes on the market rose 1.9% from August and 4.6% from a year earlier, reaching 1.6 million. That represented a 4.8-month supply, unchanged from August and higher than the 4.5 months recorded a year earlier. The median sale price was $417,500, up 1.3% year over year.
Yun said greater inventory and longer marketing times are giving buyers more room to negotiate. Sellers, he added, may need to adjust asking prices or offer incentives to attract buyers in their local markets.
Mortgage rates and sales by home type
Freddie Mac reported that the average 30-year fixed mortgage rate rose to 6.86% in September, compared with 6.67% in August and 6.35% in September 2025. Yun warned that further rate increases in recent weeks could make it harder for some buyers to qualify.
Single-family home sales advanced 2% month over month to an annual rate of 3.64 million, though they were down 1.9% year over year. Condo and co-op sales moved in the opposite direction, falling 2.4% from August and 5.4% from a year earlier to an annual rate of 350,000.
Regional picture
Sales rose month over month in the South and West, held steady in the Midwest and declined in the Northeast. Compared with September a year earlier, sales were lower in all four regions, showing that the monthly improvement did not yet reflect a broad-based annual recovery.