Existing-Home Sales Rise 1.5% but Higher Mortgage Rates Cloud Outlook

U.S. existing-home sales increased in September, but activity remained below year-earlier levels as higher mortgage rates and rising prices constrained affordability, even with more properties available to buyers.

Sales rose 1.5% from August to a seasonally adjusted annual rate of 3.99 million, the National Association of Realtors reported Tuesday. Transactions declined 2.2% from September 2025, with annual sales falling in all four regions.

“Despite the small monthly gain on a seasonally adjusted basis, August and September marked the two slowest months for home sales this year,” said Lawrence Yun, NAR’s chief economist.

Inventory reached 1.6 million homes, up 1.9% from August and 4.6% from a year earlier. Supply stood at 4.8 months at the current sales pace, unchanged monthly but above last September’s 4.5 months.

The median sales price increased 1.3% to $417,500, marking the 39th consecutive month of annual gains.

The average 30-year fixed mortgage rate was 6.86% in September, compared with 6.67% in August and 6.35% a year earlier, according to Freddie Mac data. By Oct. 8, the weekly average had reached 7.40%, adding pressure on prospective buyers.

Yun said higher inventory and longer marketing periods were improving buyers’ negotiating power and could require sellers to offer discounts or incentives.

Properties typically spent 33 days on the market, compared with 31 in August.

Regional sales increased 2.8% in both the South and West, held steady in the Midwest and declined 2.1% in the Northeast.

Single-family sales rose 2% monthly to a 3.64 million annual rate, while condominium and co-op sales fell 2.8% to 350,000.

Investors and second-home buyers accounted for 20% of transactions, up from 15% in August and a year earlier. First-time buyers represented 31%, while cash purchases accounted for 27%. Distressed sales remained at 2%, unchanged from both the previous month and September 2025, according to NAR.