Existing-home sales weakened sharply in October, falling below forecasts as mortgage costs rose. The National Association of REALTORS® reported an annualized sales pace of 3.75 million, the lowest since August 2010. Prices and available inventory edged higher, but the increase in borrowing costs added pressure for buyers weighing the full cost of homeownership.
Key takeaways
- Sales fell 5.5% from September and 8.8% from October 2025.
- The 3.75 million annualized pace missed the 3.87 million consensus estimate.
- The average 30-year mortgage rate rose to 7.33% in October.
- The median price increased 0.4% year over year to $414,900, while inventory rose 4.6% to 1.59 million homes.
Together, the figures show a market where a modest rise in listings and prices has not offset the strain of higher financing costs.
Mortgage costs weigh on demand
The October sales rate was down from September’s 3.99 million, according to the NAR report. NAR Chief Economist Lawrence Yun said elevated mortgage rates were making purchases difficult and linked the decline to sales reaching their lowest point since August 2010.
Freddie Mac’s average rate for a 30-year fixed mortgage was 7.33% in October. That was up from 6.86% in September and 6.25% a year earlier, leaving buyers facing higher borrowing costs than in either comparison period.
Sales decline across most regions
Compared with a year earlier, existing-home sales fell in all four U.S. regions. On a monthly basis, sales declined in the Midwest, South and West, while the Northeast was roughly unchanged.
The regional pattern indicates that the annual downturn was broad, even as the month-to-month results varied. The report did not provide regional sales figures in the information available.
Higher inventory offers limited relief
The number of homes on the market rose 4.6% to 1.59 million, while the median existing-home price reached $414,900, a 0.4% annual increase. The data point to more listed homes alongside prices that remained slightly above year-ago levels.
For buyers, the purchase price is only one part of the affordability calculation. Agent Todd Luong said property taxes, insurance, mortgage payments, maintenance and other expenses can push the total monthly cost beyond what a household is comfortable paying, even if it qualifies for a loan.