US Home Sales Drop to 16-Year Low as Mortgage Rates Climb

Existing home sales across the United States dropped to their lowest level since August 2010, totaling 3.75 million units in October. According to the National Association of Realtors, sales fell by 8.8% compared to the previous year as prospective buyers faced a combination of rising inflation and high mortgage rates that hovered near a three-year high at about 7.18% for a 30-year loan. The decline follows adjustments by the US Federal Reserve, which hiked interest rates to combat higher-than-expected inflation. While regional declines were recorded across the midwest, south, and west, home prices saw a slight increase to a median of $416,700, continuing affordability challenges for buyers.