US homes sales rose in October as homebuyers seized on declining mortgage rates

Sales of previously occupied U.S. homes increased last month to the fastest pace since February as lower mortgage rates helped pull more homebuyers into the market.

Existing home sales rose 1.2% in October from the previous month to a seasonally adjusted annual rate of 4.10 million units, the National Association of Realtors said Thursday.

Sales climbed 1.7% compared with October last year. The latest sales figure topped the roughly 4.09 million pace economists were expecting, according to FactSet.

The national median sales price increased 2.1% in October from a year earlier to $415,200. That’s the 28th consecutive month that home prices have risen on an annual basis.

The U.S. housing market has been in a slump since 2022, when mortgage rates began climbing from historic lows. Sales of previously occupied U.S. homes sank last year to their lowest level in nearly 30 years.

Sales have remained sluggish this year, but have gotten a boost this fall as the average rate on a 30-year mortgage declined to its lowest level in more than a year.

Even so, affordability and uncertainty over the economy and job market remain significant hurdles for many aspiring homeowners after years of skyrocketing home prices.