Existing Home Sales Drop Again in September

White Hot to Ice Cold: Higher Mortgage Rates Freeze the Housing MarketSource: Economics Group of Wells Fargo Bank, N.A.Summary Resales Decline for Eight Straight Months

  • Existing home sales fell 1.5% during September, the eighth consecutive monthly drop. The 4.71 million-unit pace reached during the month translates to a 23.8% year-over-year decline. Excluding the early months of the pandemic when home-buying came to grinding halt, September’s pace is the slowest since September 2012.
  • Mortgage rates have risen sharply this year as the Fed has aggressively tightened monetary policy in order to tamp down inflation. The rapid move up in financing costs has greatly reduced affordability for buyers and locked in homeowners who hold lower mortgage rates, bringing home buying and selling to a virtual standstill.