Existing-Home Sales Tick Higher as Falling Mortgage Rates Boost Buyer Activity

According to the National Association of Realtors (NAR), sales of previously owned homes climbed 1.5% in September, signaling renewed momentum in the housing market as mortgage rates eased slightly from recent highs. The increase marks a positive shift following several months of sluggish activity, reflecting both improved affordability and growing buyer confidence.

The NAR data shows regional variation, with sales rising in the Northeast, South, and West, while the Midwest experienced a modest decline. Still, the national uptick underscores how sensitive buyer demand remains to rate fluctuations — and how even a small improvement in borrowing costs can spark renewed market movement.

Lawrence Yun, chief economist for NAR, explained, “As anticipated, falling mortgage rates are lifting home sales. Improving housing affordability is also contributing to the increase in sales.” Yun also noted that inventory levels have reached a five-year high, offering more options for buyers, though still lagging behind pre-pandemic supply levels.

Despite more homes on the market, prices continue to climb in most regions. Yun attributes this to strong homeowner equity and limited distressed inventory: “Many homeowners are financially comfortable, resulting in few forced sales. Home prices continue to rise in most parts of the country, further contributing to overall household wealth.”

Another key metric: homes are spending more time on the market, averaging 33 days in September, up from 28 days a year ago. This indicates slightly less urgency among buyers but also more negotiating opportunity in certain price ranges.

What This Means for Buyers and Sellers

• Buyers: With rates edging lower and inventory expanding, late-year market conditions may offer more choices and less competition than in past seasons.

• Sellers: While pricing remains strong, expect longer days on market and the need for strategic pricing and marketing to attract qualified buyers.

Overall, the data points to a market that’s stabilizing rather than cooling — one where affordability is gradually improving and buyer activity is returning.

Stay updated on mortgage trends, rate movements, and housing market insights at NewHomeApproval.com.