US Home Sales Fall to 16-Year Low as Mortgage Rates Near Three-Year High

Sales of previously built homes in the United States dropped to a 16-year low in October, as record-high mortgage rates continued to weigh on the housing market. Sales of built units fell to 3.75 million in October, down 8.8% from the same month last year, according to The Guardian. The decline marks the weakest pace of home sales in 16 years, underscoring the pressure that elevated borrowing costs are placing on prospective buyers.

Mortgage rates stood at nearly a three-year high during the month, a key factor behind the slump in transactions. Higher rates raise the cost of financing a home purchase, reducing affordability for buyers and cooling demand across the market. The combination of near-record borrowing costs and a sharp year-over-year drop in sales volume points to a housing market that remains under significant strain.

The October figures highlight how sensitive the housing sector has become to the trajectory of mortgage rates. With sales volumes at their lowest level in more than a decade and a half, the data suggest that affordability constraints are keeping many would-be buyers on the sidelines.

For investors, the reading is a signal that housing-related activity remains subdued and that any sustained recovery in sales likely depends on a meaningful easing in financing costs. The 8.8% annual decline in built-unit sales and the 3.75 million annualized pace are the central figures from the October data, framing the scale of the slowdown in the US housing market.