US Home Sales Hit 16-Year Low in October as Mortgage Rates Set Records

US home sales fell to their lowest level in 16 years in October, as record-high mortgage rates kept buyers on the sidelines and weighed on the housing market.

The decline marks the weakest October for home sales in more than a decade and a half, underscoring how sharply higher borrowing costs have chilled demand. Mortgage rates reached record highs during the month, according to the report, compounding affordability pressures that have already constrained would-be buyers.

The slump reflects the broader strain on the housing market, where elevated financing costs have eroded purchasing power and discouraged transactions. With rates at record levels, prospective buyers face significantly higher monthly payments than in prior years, a dynamic that has contributed to the sharp pullback in sales activity.

The October reading extends a period of weakness for the housing sector, which has been sensitive to the trajectory of mortgage rates. Sales volumes have now fallen to a level not seen in 16 years, a signal that the combination of high rates and affordability constraints is weighing heavily on transaction activity.

For investors, the data points to continued pressure on housing-related sectors, including homebuilders, mortgage lenders and real estate services, as well as on consumer spending tied to housing activity. The weak sales figures also reinforce the extent to which financing costs are shaping household decisions, with buyers deferring purchases as they assess affordability at current rate levels. The report offers a clear measure of how record mortgage rates are transmitting into actual transaction volumes rather than merely sentiment.