U.S. Home Sales Fall to 16-Year Low as Median Price Hits a Record

By Sarah Collins | November 13, 2026

Sales of previously owned homes in the United States fell in October to their slowest pace in more than 16 years, the National Association of Realtors reported on Thursday, as sharply higher mortgage rates pushed borrowing costs beyond the reach of many buyers — even as the median home price climbed to a record high.

Existing-home sales dropped 5.5 percent in October from September to a seasonally adjusted annual rate of 3.75 million units, the Realtors group said. That is the weakest pace since August 2010. Sales were down 8.8 percent compared with October last year, and fell short of the 3.8 million pace economists had expected, according to FactSet. The national median existing-home price rose 0.4 percent from a year earlier to $416,700, an October record, and the 40th consecutive month of annual price increases.

### Mortgage rates drive the slowdown

The main cause of the slump was financing costs. The average rate on a 30-year fixed mortgage was 7.33 percent in October, according to Freddie Mac, up from 6.86 percent in September and 6.25 percent a year earlier. The rate reached 7.4 percent early in the month, its highest level in nearly three years. "Home buying is difficult when mortgage rates have climbed to their highest levels since 2000, aside from a single month in 2023," Lawrence Yun, the National Association of Realtors' chief economist, said. "As a result, home sales fell to their lowest level since August 2010."

It was the third straight month below a 4-million pace. Sales have mostly hovered near a 4-million annual pace since 2023, far short of the historic norm of about 5.2 million. The market has slumped since 2022, when rates began climbing from pandemic-era lows, and sales were essentially flat last year at a 30-year low. Yun expects sales this year will likely end up lower than in 2025. Sales in the West fell to the slowest pace in data going back to 1999.

### Prices refuse to fall

Even with demand at a 16-year low, prices have not followed sales down. The median price of $416,700 was up from $414,900 a year earlier, and prices have risen annually every month since July 2023. Part of the reason is limited supply: homes on the resale market rose 4.6 percent from a year earlier to 1.59 million units, but that is still only a 5.1-month supply at the current sales pace.

Affordability has worsened. The Realtors group's Housing Affordability Index fell to 100.7 in October, down from 107.3 a year earlier, meaning a typical family barely earns enough to qualify for a mortgage on a median-priced home. The median listing price fell 2.2 percent to $415,000, according to Realtor.com, as about 20.5 percent of listings cut their initial price.

### What comes next for buyers

Economists do not expect a quick recovery. "With sales at a 16-year low, and the Fed poised to raise rates further, housing will remain under pressure for some time," Priscilla Thiagamoorthy, a senior economist at BMO Capital Markets Economic Research, wrote in a note on Thursday. There was, however, a glimmer of relief: Freddie Mac's weekly survey showed the rate at 7.11 percent on November 12, the fourth straight weekly decline.

Because existing-home sales count closings rather than newly signed contracts, the October figures largely reflect buying decisions made in September. The next signal will come from the Realtors group's October pending-home-sales report, scheduled for November 18. Until borrowing costs fall more decisively, analysts say, the market is likely to stay frozen.

Sources: National Association of Realtors (via Fast Company, Associated Press via ProKerala, Business Times, TradingView/dpa-AFX, Scotsman Guide, Freddie Mac data)