Rising mortgage rates keep home sales at their lowest level since the start of the year

Existing home sales in the United States recorded a slight monthly increase in September, despite rising mortgage rates, although sales remained near their lowest levels of the year.

Home sales rose 1.5% in September from the previous month to a seasonally adjusted annual rate of 3.99 million, according to National Association of Realtors data released Tuesday. Compared to a year ago, sales are down 2.2%.

Sales have been declining since 2021
Yahoo Finance

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Mortgage rates rose sharply in September, starting the month well below 7% and ending around 7.5%, although September sales data largely reflects homes that went under contract in August, when rates were beginning to rise but were well below recent highs.

As buyers remain cautious, inventory for sale has increased and homes are staying on the market longer. There were 1.6 million homes available for sale in September, the highest level since November 2019, giving buyers the advantage in negotiations.

“It’s a very tough market, especially with mortgage rates rising,” said Lawrence Yun, NAR’s chief economist.

Claire Boston is a senior reporter for Yahoo Finance, covering housing, mortgages and homeowners insurance.

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