The National Association of Real Estate Agents released a report on Tuesday, indicating a 1.5% increase in existing home sales in the United States during September. This resulted in an annual sales rate of approximately 3.99 million units, a figure that remains consistent despite the ongoing influence of high mortgage rates.
Mortgage interest rates have surged to 7.40% in recent weeks, reaching one of the highest levels since 2023. This increase is largely attributed to the rising yield of 10-year Treasury bonds, which has also reached 5%. The escalation of the conflict with Iran has contributed to higher energy prices and subsequently pushed inflation above 3% for the second time.
According to Lawrence Yun, the National Association of Realtors' chief economist, August and September experienced the lowest housing sales volume of the year, with a small seasonally adjusted increase in the latest data. Recent increases in mortgage rates suggest that fewer buyers will be able to access home purchases.
According to the report, the housing market experienced a further price surge in September, with a 1.3% increase, bringing the average cost to $417,500, one of the highest recorded this year. Notably, private investors comprised 20% of transactions, while early buyers accounted for 31% of sales. To maintain a stable market, it is essential that early buyers continue to drive sales, with a minimum of 40% stake in this segment required.
Inventory levels in the country reached 1.9% in September, representing a 4.6% increase compared to the same period last year. Notably, sales were highest in the South and West regions, while sales declined in the Northeast.
