US Home Sales Surge in September Achieving Fastest Growth Since February Amid Easing Mortgage Rates
U.S. home sales experienced significant growth in September. This surge reflects easing mortgage rates and an increase in available properties. The seasonally adjusted annual rate of existing home sales reached 4.06 million units, marking a 1.5% increase from August, according to the National Association of Realtors.
Fastest Growth Since February
This sales growth is the fastest observed since February of this year. Additionally, sales rose by 4.1% when compared to September of the previous year. However, this figure slightly lagged behind economists’ expectations, which were around 4.07 million units, as reported by FactSet.
Median Sales Price Increases
In September, the national median sales price for homes climbed to $415,200, reflecting a 2.1% rise from the same month last year. This increase marks the 27th consecutive month of price growth.
Background of the Housing Market
The U.S. housing market has faced challenges since 2022, primarily due to rising mortgage rates. Last year, sales of previously occupied homes fell to their lowest levels in nearly three decades.
Declining Mortgage Rates
- Mortgage rates began to decrease in July.
- The Federal Reserve cut its main interest rate last month for the first time in a year.
- This decision was influenced by concerns regarding the U.S. job market.
Homes sold in September likely had contracts signed in July and August. During that period, the average rate on a 30-year mortgage fluctuated between 6.75% and 6.56%, according to Freddie Mac. The trend of declining mortgage rates continued into September, with averages dropping to as low as 6.27% recently.
