US existing home sales rise in September; higher mortgage rates dim outlook
- Existing home sales rose 1.5% despite a backdrop of brutal borrowing costs.
- 30-year fixed mortgage rates hit 7.40%, the highest level since late 2023.
- Median home price reaches a September record of $417,500.
- Inventory levels hit a post-2019 high, yet affordability remains in the gutter.
Brief Summary
The housing market is showing signs of a pulse, with existing home sales climbing to an annual rate of 3.99 million in September, defying economist predictions of a decline. However, don't mistake this for a recovery. Sales are down 2.2% compared to last year, and the market is effectively paralyzed by mortgage rates that have soared over 140 basis points since February. While inventory is finally creeping up to its highest level in five years, the cost of entry is keeping the American dream locked behind a high-interest paywall.
Why This Matters
If you are looking to buy, you are staring down the barrel of a 7.40% interest rate that drastically slashes your purchasing power and inflates your monthly payment. Even with slightly more inventory on the market, you are competing against cash-heavy investors and a median price tag that refuses to retreat from record highs. This environment makes homeownership an increasingly expensive luxury, forcing you to stretch your budget further or wait on the sidelines while your hard-earned savings lose value to inflation.