Home sales in the US are at their lowest level since 2016

What the report says

Sales of previously owned homes in the United States fell sharply in October, reaching their lowest level since August 2010, according to the National Association of Realtors. Al Jazeera reported that sales dropped 5.5 percent from the previous month to a seasonally adjusted annual rate of 3.75 million units, while year-over-year sales declined 8.8 percent. The trade group said the slowdown reflects a housing market that remains under pressure from elevated borrowing costs.

The report comes as average 30-year fixed mortgage rates have stayed above 7 percent, making it harder for buyers to qualify for loans and discouraging some would-be sellers and purchasers. NAR chief economist Lawrence Yun said home buying has become difficult because rates are near their highest levels since 2000, apart from one month in 2023. He described the market as challenging for both buyers and sellers.

Al Jazeera noted that first-time buyers made up 29 percent of purchases in October, down from recent months and below the roughly 40 percent share they have historically represented. Sales fell in the Midwest, South and West, while the Northeast was unchanged month to month. The broader context is that US home sales have been weak since mortgage rates rose from pandemic-era lows in 2022, leaving the housing market stuck near long-term lows.