Home sales rose in October as lower mortgage rates brought out buyers—despite the shutdown disruptions

Home sales jumped in October as lower mortgage rates encouraged buyers to re-enter the market.

Sales of existing homes rose 1.2% last month from September to a seasonally adjusted annual rate of 4.1 million, according to National Association of Realtors data released on Thursday.

Sales rose 5.3% month-over-month in the Midwest, and a more modest 0.5% in the South. They were flat in the Northeast and fell in the West. Compared to a year earlier, home sales were up 1.7%.

The jump came even though the federal government was shut down for the entire month, which spooked some potential buyers and disrupted closings for those using certain types of government-backed mortgages or seeking flood insurance through a federal program.

But buyers in the market last month were able to take advantage of lower mortgage rates. Average 30-year mortgage rates dropped last month, ending October around 6.17%, the lowest level in more than a year.

As of October, 3.42 million homes have been sold year-to-date, leaving the country on track for another year of historically depressed sales. Last year was the lowest year for home sales in nearly three decades, and 2025 is trending toward being around that level again, said Lawrence Yun, the NAR’s chief economist.

“The way I see it is that the past three years — 2023, 2024, 2025 — have had historically low home sales activity,” Yun said. “Even with these latest October figures showing a little better momentum.”

Claire Boston is a Senior Reporter for Yahoo Finance covering housing, mortgages, and home insurance.