Rising Home Sales Amid Economic Uncertainty
U.S. existing home sales hit a seven-month high in September, driven by high-end market activity. Despite easing mortgage rates, resale growth may stall due to economic uncertainty and affordability issues. Sales increase was noted predominantly in affluent areas, while lower-end sales showed sluggish growth.
In September, existing home sales in the U.S. surged to a seven-month peak, as reported by the National Association of Realtors. This upswing, however, primarily benefited high-income households amid economic uncertainty and a cooling labor market, potentially limiting broader market growth.
While the average mortgage rate has dropped to a one-year low, affordability remains a significant hurdle for many potential buyers, particularly those in lower and middle-income brackets. This challenge is exacerbated by an uncertain economic outlook and stagnant employment opportunities.
Although the housing inventory increased by 14% from the previous year, affording more choices for buyers, the broader market still faces hurdles. With a potential upswing expected in 2026 as the economy recovers, current affordability issues continue to be a pressing concern.
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