September Home Sales Plummet to 13-Year Low Amidst Rising Mortgage Rates and Surging Prices

Sales of previously owned homes in the US dropped 2% in September, reaching the slowest pace since October 2010 during the Great Recession. Limited inventory and low housing affordability continue to hinder sales, with the Federal Reserve facing pressure to avoid further interest rate hikes. The median home price rose 2.8% year over year, and bidding wars are becoming more common due to the lack of supply. First-time buyers accounted for just 27% of sales, well below the historical average of 40%. Mortgage demand is at its lowest level since 1995, and all-cash sales made up 29% of transactions in September.