Home sales fell again in September as surging mortgage rates, rising prices discouraged homebuyers

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Home sales fell again in September as surging mortgage rates, rising prices discouraged homebuyers
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Sales of previously occupied U.S. homes fell for the fourth month in a row in September, held back by surging mortgage rates and a thin supply of properties on the market. Existing home sales fell 2% last month from August to a seasonally adjusted annual rate of 3.96 million, the National Association of Realtors said Thursday.

File - A housing development in Middlesex Township, Pa., is shown on Oct 12, 2022. On Thursday, the National Association of Realtors releases data for sales of existing homes last month. LOS ANGELES — Sales of previously occupied U.S. homes fell for the fourth month in a row in September, held back by surging mortgage rates and a thin supply of properties on the market.

Sales sank 15.4% compared with the same month last year and are down 21% through the first nine months of the year versus the same period in 2022. The weekly average rate on a 30-year mortgage moved above 7% in August, when many of the home sales that were finalized in September would have gone under contract. It has remained above that threshold since, surging last week to 7.57%, the highest level since 2000, according to mortgage buyer Freddie Mac.

While surging mortgage rates have shut out many prospective buyers, a chronic shortage of homes for sale continues to keep the market competitive, especially for the most affordable homes.

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