Existing Home Sales Rise for Third Straight Month as Mortgage Rates Ease

The U.S. housing market showed renewed momentum in November as existing home sales increased for the third consecutive month, according to the latest data from the National Association of Realtors (NAR). While the pace of growth remains modest, the trend is significant—especially for buyers and homeowners watching mortgage rates, home prices, and inventory levels closely.

Existing Home Sales Trends by Region

On a month-over-month basis, existing home sales rose 0.5% nationally, driven primarily by activity in the Northeast and the South. Sales were flat in the West and declined slightly in the Midwest. This uneven regional performance highlights how local market conditions and affordability continue to shape buyer behavior.

Lower mortgage rates played a major role in this recent pickup. After months of elevated borrowing costs sidelining buyers, even small rate improvements have had an outsized impact on demand—particularly for first-time homebuyers and move-up buyers who are payment-sensitive.

Mortgage Rates Fuel Buyer Demand

NAR Chief Economist Lawrence Yun attributed the sales increase largely to easing mortgage rates during the fall months. As rates pulled back from recent highs, buyers who had been waiting on the sidelines re-entered the market, leading to steady gains in existing home sales.

However, Yun also noted a growing concern: inventory growth is beginning to stall. Despite higher buyer interest, many homeowners remain reluctant to list their properties—especially during the winter months.

Housing Inventory: Higher Year-Over-Year, Lower Month-Over-Month

In November, the number of homes available for sale was 7.5% higher than the same time last year, offering buyers more options than they had in late 2023. But compared to October, inventory declined by nearly 6%, signaling a seasonal slowdown and a potential constraint on future sales growth.

Several factors are contributing to this dynamic:

• Distressed property sales remain at historic lows

• Homeowner equity is at an all-time high

• Many homeowners are locked into ultra-low mortgage rates from previous years

As a result, sellers feel little urgency to move, even as buyer demand improves.

Home Prices Continue to Rise

Despite affordability challenges, home values remain resilient. The median single-family home price reached $414,300 in November, up 1.2% year-over-year. While this pace of appreciation is slower than during the peak pandemic years, it reinforces the long-term strength of housing as a wealth-building asset.

For homeowners, rising prices mean increased equity and stronger financial positions. For buyers, it underscores the importance of timing and strategy—waiting too long can mean paying more later, even if rates decline.

What This Means for Buyers

• Lower mortgage rates are creating new opportunities, even as inventory tightens

• Competition may increase quickly if rates fall further

• Locking in a home now can protect against future price appreciation

• Exploring rate buydowns, adjustable-rate mortgages, or first-time buyer programs can improve affordability

What This Means for Sellers

• Buyer demand is improving, especially in desirable markets

• Limited inventory supports strong pricing

• Well-priced, move-in-ready homes continue to sell

• Strategic timing and professional pricing remain critical

Bottom Line

The housing market is entering a delicate balance: mortgage rates are easing, demand is rising, but inventory remains constrained. For buyers and sellers alike, understanding these trends—and how they impact your local market—is essential.

If you’re considering buying, selling, or refinancing, working with a mortgage professional who understands current market conditions can make a meaningful difference in your outcome.

Want to know how today’s mortgage rates and housing trends affect your buying power?Visit NewHomeApproval.com to explore your options and get expert guidance tailored to your goals.