Published November 13, 2026 · By
Existing home sales fell 5.5% in October to a seasonally adjusted annual rate of 3.75 million, the National Association of Realtors (NAR) reported Thursday, November 12. That is the slowest pace since August 2010, according to Realtor.com, and it came as 30-year mortgage rates averaged above 7% for the month. The median price still edged up to $416,700, so buyers faced both higher borrowing costs and slightly higher prices.
Existing Home Sales Hit a 16-Year Low in October
According to NAR's monthly report, completed transactions of previously owned single-family homes, townhomes, condominiums and co-ops dropped from September's pace of 3.99 million to 3.75 million. Compared with October 2025, when the annual pace was 4.11 million, existing home sales were down 8.8%.
Danielle Hale, chief economist at Realtor.com, said in comments reported by RISMedia that the October figure was the lowest reading since August 2010, when the pace was 3.68 million. The economics blog Calculated Risk described the result as a new low for the current housing cycle.
The drop in existing home sales was broad. Single-family existing home sales fell 5.8% from September to an annual rate of 3.41 million and were 8.6% lower than a year earlier. Condo and co-op sales slipped 2.9% for the month to 340,000 and were down 10.5% from October 2025.
Prices Still Rose, but Only Slightly
The median existing-home price for all housing types was $416,700, up 0.4% from $414,900 a year earlier. NAR said it was the 40th consecutive month of year-over-year price gains. The median single-family price was $421,900, also up 0.4%, while the median condo price was $365,100, up 0.3%.
NAR's Housing Affordability Index fell to 100.7 from 107.3 a year earlier, and affordability declined in all four regions. A lower reading means a typical family has less income cushion to qualify for a mortgage on a median-priced home.
Inventory and Time on the Market
Even as existing home sales slowed, unsold inventory reached 1.59 million homes at the end of October, up 1.3% from September and 4.6% from a year earlier. At the current sales pace, that equals 5.1 months of supply, up from 4.7 months in September and 4.4 months in October 2025. Homes took a median of 35 days to sell, compared with 33 days in September.
Calculated Risk noted that months of supply stood at 3.9 in October 2019, before the pandemic. In its reading, the increase since then reflects sales falling faster than listings rising, rather than a flood of new homes for sale.
Why Existing Home Sales Slowed: Rates Above 7%
NAR cited Freddie Mac data showing the average 30-year fixed mortgage rate was 7.33% in October, up from 6.86% in September and 6.25% a year earlier. RISMedia reported that rates had been near 6% before the Iran war pushed energy prices and inflation expectations higher, and have stayed above 7% since. Meridian Pioneer reported on the latest jump in our coverage of mortgage rates rising to 7.30% after the October CPI report.
NAR Chief Economist Lawrence Yun tied the weak existing home sales figure directly to borrowing costs. "Home buying is difficult when mortgage rates have climbed to their highest levels since 2000," he said in the release. Yun added that there could be sizable pent-up demand if rates come down, and he said the country's roughly 88 million homeowners are largely in a comfortable financial position.
Hale told RISMedia that October reflected a combination of a sudden shift in the financial environment and uncertainty about policy and the economy ahead of the midterm elections. She said she expects more buyers to return as rates ease, but that the upside will be limited because a strong job market, persistent inflation and the prospect of tighter monetary policy are keeping a floor under rates.
Sean Fergus, vice president of economic research at NewHomeSource and Zonda, said buyers need to trust that any relief will last before they return in large numbers, according to RISMedia.
The Federal Reserve Backdrop
Mortgage rates are not set by the Federal Reserve, but they tend to move with Treasury yields and expectations for Fed policy. Futures markets tracked by CME FedWatch on Thursday priced in a high probability of a quarter-point rate increase at the Fed's December meeting, according to a Zacks market summary published by Yahoo Finance. The Fed's official schedule is posted on the Federal Reserve's FOMC calendar page. For background, see our report on the Fed meeting schedule for 2027.
Stocks closed lower Thursday, with the Dow Jones Industrial Average down 189 points, or about 0.4%. The same Zacks summary attributed the decline to Nvidia's leadership change, Iran tensions and expectations of a Fed hike, rather than to the existing home sales report.
Existing Home Sales by Region
NAR said existing home sales fell from September in the Midwest, South and West and were unchanged in the Northeast. All four regions posted fewer sales than a year earlier. The West had the sharpest drop.
- Northeast: 470,000 annual pace, unchanged from September and down 4.1% from a year earlier; median price $519,600, up 3.2%.
- Midwest: 900,000, down 3.2% for the month and 8.2% for the year; median price $324,300, up 1.5%.
- South: 1.73 million, down 6.5% for the month and 8% for the year; median price $360,900, down 0.4%.
- West: 650,000, down 9.7% for the month and 14.5% for the year; median price $624,300, unchanged.
Who Is Buying Now
First-time buyers made up 29% of October purchases, down from 31% in September and 32% a year earlier. All-cash deals rose to 29% of sales from 27% in September. Individual investors and second-home buyers accounted for 20% of transactions, up from 16% in October 2025. Distressed sales, such as foreclosures and short sales, stayed at 2%, which NAR described as historically low.
Analysis: A falling share of first-time buyers alongside a rising share of cash buyers suggests that households who need financing are being squeezed most by higher rates, while buyers who can pay cash face fewer obstacles.
What the Drop in Existing Home Sales Means for You
The October existing home sales report affects buyers, sellers and current owners differently. Here is a practical look at each group, based on the figures above.
If You Are Buying a Home
More inventory and longer days on the market can give buyers more room to negotiate on price, repairs or seller-paid closing costs. At the same time, a 7.33% average rate makes the same loan far more expensive than it was a year ago. Comparing offers from several lenders, checking whether a rate lock or a float-down option is available and reviewing your debt-to-income ratio can help. The Consumer Financial Protection Bureau offers free homebuying tools and loan estimate guides.
If You Are Selling
With 5.1 months of supply nationally and existing home sales down in three of four regions, pricing realistically from the start matters more than it did in recent years. Local conditions vary widely: prices rose 3.2% in the Northeast but were flat in the West and slightly lower in the South, so recent nearby sales are a better guide than national averages.
If You Already Own a Home
Prices are still slightly higher than a year ago nationally, so most owners have not lost equity on paper. Owners with older, lower-rate mortgages may find it costly to move, which is one reason existing home sales remain low. If you are considering a cash-out refinance or home equity loan, compare the new rate carefully with your existing one.
What to Watch Next
Key signals include the Fed's December decision, weekly Freddie Mac rate surveys and NAR's November existing home sales report, due next month. RISMedia noted that rates eased somewhat in early November; whether that shows up in pending contracts will be an early test of the pent-up demand Yun described.
This article is for information only and is not financial advice.
Sources: National Association of Realtors; RISMedia; Calculated Risk; Yahoo Finance/Zacks; Federal Reserve.
