Input Stories

Sales of existing homes fell to a 14-year low last month (Reuters).

What’s going on: “Home sales fell 1.0% last month to a seasonally adjusted annual rate of 3.84 million units, the lowest level since October 2010, the National Association of Realtors said on Wednesday.”

• Year on year, home resales decreased 3.5% in September.
• Reuters-polled economists had predicted the numbers would be the same as August’s, a rate of 3.86 million units.

Supply and pricing: Housing inventory rose 1.5% last month to 1.39 million units, the highest in nearly four years.

• The median price of an existing home increased 3.0% in September from a year earlier, however, to $404,500.  

Why it’s happening: Mortgage rates initially declined after the Federal Reserve cut interest rates last month, but they have climbed again in recent weeks as the prospect of another large rate cut in November dims.

• “Potential homebuyers are remaining on the sidelines anticipating even lower borrowing costs.”
• The upcoming election could also be making house hunters wary of making a large purchase now, the NAR said.