Existing-home sales fell 5.5% in October to their slowest pace since August 2010, as higher mortgage rates squeezed buyers.
The median sales price rose 0.4% from a year earlier to $416,700, marking the 40th consecutive month of annual price increases.
Buyers had more homes to choose from, but affordability worsened and first-time buyers accounted for a smaller share of purchases.
Sales of previously owned homes dropped sharply in October, reaching their lowest level in more than 16 years as rising mortgage rates made buying a home at current prices increasingly difficult.
Existing-home sales fell 5.5% from September to a seasonally adjusted annual rate of 3.75 million, according to the National Association of Realtors’ latest report. Sales were down 8.8% from October 2025.
The annualized figure represents the number of homes that would sell over a full year if October’s seasonally adjusted pace continued.
NAR Chief Economist Lawrence Yun attributed the slowdown to elevated borrowing costs, which pushed sales to their lowest level since August 2010.
The average 30-year fixed mortgage rate was 7.33% in October, according to Freddie Mac figures cited in the report. That was up from 6.86% in September and 6.25% a year earlier.
For buyers, that combination of higher rates and persistent home prices further weakened purchasing power. NAR’s Housing Affordability Index fell to 100.7 from 107.3 a year earlier, with affordability declining in all four major regions.
More choices, but prices remain firm
The number of homes available for sale increased even as transactions slowed.
Total 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 represented a 5.1-month supply, compared with 4.7 months in September and 4.4 months in October 2025.
Homes also took slightly longer to sell. The median time on the market was 35 days, up from 33 days in September and 34 days a year earlier.
Nevertheless, the national median existing-home price increased 0.4% from a year earlier to $416,700. The median is the midpoint of transactions, with half of homes selling for more and half for less.
The annual increase extended the national streak of rising prices to 40 consecutive months.
First-time buyers lose ground
First-time buyers accounted for 29% of October purchases, down from 31% in September and 32% a year earlier.
Meanwhile, cash purchases represented 29% of transactions, up from 27% the previous month. Individual investors and second-home buyers accounted for 20% of purchases, unchanged from September but up from 16% a year earlier.
Despite weak sales, Yun said homeowners generally remain in a comfortable financial position because of accumulated housing wealth. Distressed sales, including foreclosures and short sales, represented just 2% of transactions.
He also suggested that lower mortgage rates could release pent-up demand.
The West posts the largest decline
Sales fell most sharply in the West, dropping 9.7% from September and 14.5% from a year earlier. The region’s median price was unchanged annually at $624,300.
In the South, sales declined 6.5% for the month, while the median price slipped 0.4% from a year earlier to $360,900.
Midwest sales fell 3.2%, with the median price rising 1.5% annually to $324,300. Northeast sales held steady for the month, while the median price increased 3.2% to $519,600.
For consumers, the report shows a market offering more selection and somewhat more time to make decisions. But higher borrowing costs continue to limit what buyers can afford, even as price growth slows.