U.S. home sales fall to slowest pace since 2010 as mortgage rates bite
Photo: Keller Williams (file photo)Sales of previously owned homes fell in October to their slowest pace in more than 16 years, as mortgage rates climbed to their highest levels since 2000 and would-be buyers stayed on the sidelines — even as more homes came onto the market.
Existing-home sales dropped 5.5% in October to a seasonally adjusted annual rate of 3.75 million, the National Association of Realtors said Thursday, Nov. 12. That is the lowest level since August 2010, when sales were still falling after the end of a homebuyers tax credit, and it came in below the 3.85 million pace economists polled by Reuters had expected. Sales were down 8.8% from a year earlier.
"Home buying is difficult when mortgage rates have climbed to their highest levels since 2000, aside from a single month in 2023," said Lawrence Yun, the association's chief economist. "As a result, home sales fell to their lowest level since August 2010."
The average 30-year fixed-rate mortgage was 7.33% in October, according to Freddie Mac, up from 6.86% in September and 6.25% a year ago. Rates jumped above 7% in late August and reached 7.40% by mid-September, Freddie Mac data showed. Sales are counted at closing, so October's figures largely reflect contracts signed in August and September, when rates were at their worst.
There was one modest bright spot for buyers: rates have eased slightly since. Freddie Mac's weekly survey put the 30-year average at 7.18% last week, down from 7.24% the week before.
Prices, meanwhile, have not fallen. The median price of an existing home sold in October was $416,700, up 0.4% from a year ago — the 40th consecutive month of year-over-year price increases. The median single-family home price was $421,900, the highest ever recorded for an October.
Inventory is building. The number of homes for sale rose 1.3% in October to 1.59 million units, up 4.6% from a year ago. At October's sales pace, that supply would last 5.1 months — the most since November 2015, up from 4.7 months in September and 4.4 months a year earlier.
Sales fell in three of the country's four regions. In the Midwest, which includes Ohio, sales declined 3.2% from September to an annual rate of 900,000, with a median price of $324,300, up 1.5% from a year ago. Sales were unchanged in the Northeast, fell 6.5% in the South and dropped 9.7% in the West, where sales were down 14.5% from a year earlier.
First-time buyers accounted for 29% of sales in October, down from 32% a year ago. Cash purchases made up 29% of transactions, and individual investors or second-home buyers accounted for 20%. Homes typically sat on the market for 35 days, up from 33 days in September. Distressed sales, including foreclosures, remained at just 2% of transactions — a sign the slowdown is driven by high borrowing costs, not by forced selling.
Yun said the weak sales pace, coming at a time of steady job growth, points to demand waiting on the sidelines. "Based on the current underwhelming home sales pace at a time of consistent job growth, there could be sizable pent-up demand if mortgage rates decline," he said.
Sources: National Association of Realtors, "Existing-Home Sales Decreased 5.5% in October, According to NAR Report" (Nov. 12, 2026, full text verified); Reuters, "US existing home sales slump to more than 16-year low in October" (Nov. 12, 2026, full text verified); Real Estate News, "Existing home sales haven't been this slow since 2010" (Nov. 12, 2026).
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