September Existing-Home Sales Rise as Mortgage Rates Fall, Affordability Improves, NAR Says

12:38 PM EDT, 10/23/2025 (MT Newswires) -- Existing home sales in the US rose in line with market estimates last month amid declining mortgage rates and improving affordability and inventory, data from the National Association of Realtors showed Thursday.

Sales increased 1.5% sequentially to a seasonally adjusted annual rate of 4.06 million units in September, meeting the Bloomberg-compiled consensus.

"Falling mortgage rates are lifting home sales," NAR Chief Economist Lawrence Yun said. "Inventory is matching a five-year high, though it remains below pre-COVID levels."

The average 30-year fixed-rate mortgage decreased to 6.35% last month from 6.59% in August, the NAR said, citing Freddie Mac data.

The median sales price of existing homes rose 2.1% year over year to $415,200 in September, marking the 27th straight month of annual gains.

"Many homeowners are financially comfortable, resulting in very few distressed properties and forced sales," Yun said. "Home prices continue to rise in most parts of the country, further contributing to overall household wealth."

Single-family home sales grew 1.7% month over month to 3.69 million units in September, while condominium and co-op sales held steady at 370,000 units, the NAR said.

"Mortgage rates have been easing since the beginning of September, but it will take at least two more months before the housing market starts to see a positive impact," Jefferies said in a note to clients Thursday. The (25-basis-point Federal Reserve) rate cut announced in September has opened the door for lower rates, but further cuts are needed to more meaningfully stimulate activity in the market."

The central bank's Federal Open Market Committee is widely expected to lower its benchmark lending rate by a quarter percentage point next week, according to the CME FedWatch tool.

Earlier this week, the Mortgage Bankers Association said mortgage applications decreased for a fourth consecutive week, though refinance activity picked up as rates dropped. A report by real estate marketplace Zillow Group (ZG) (Z, ZG) showed that housing activity in the US was "unseasonably resilient" last month.

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