Washington, D.C., November 21, 2025
In a notable increase, existing home sales in the U.S. rose by 1.2% in October, marking a seasonally adjusted annual rate of 4.10 million units, the highest since February. This rise in home sales is attributed to buyers capitalizing on declining mortgage rates. Despite tight inventory and a record median sales price of $415,200, affordability remains an ongoing challenge for first-time buyers, who made up a smaller portion of sales.
U.S. Home Sales Rise in October as Buyers Capitalize on Lower Mortgage Rates
Washington, D.C. – Existing home sales in the United States increased by 1.2% in October, reaching a seasonally adjusted annual rate of 4.10 million units. This marks the fastest pace since February and slightly exceeds economists’ expectations. The uptick is largely attributed to homebuyers taking advantage of declining mortgage rates.
The national median sales price for existing homes rose by 2.1% year-over-year to $415,200, setting a new record for October. This represents the 28th consecutive month of annual price increases.
Inventory remains tight, with 1.52 million unsold homes at the end of October, equating to a 4.4-month supply. This is below the pre-pandemic norm of a 5- to 6-month supply, indicating ongoing challenges in meeting buyer demand.
First-time buyers, who typically account for about 40% of sales, made up only 34% in October. This is slightly up from 27% a year earlier but still below historical averages, highlighting ongoing affordability challenges for new entrants into the market.
Despite the positive momentum, affordability remains a significant hurdle. The typical monthly mortgage payment, assuming a 20% down payment, is $1,778, up 99.3% since pre-pandemic levels.
Looking ahead, experts anticipate a modest recovery in home sales in 2026, contingent upon increased inventory and further declines in mortgage rates.
Key Features of the U.S. Housing Market in October 2025
| Feature | Details |
|---|---|
| Existing Home Sales Increase | 1.2% rise to a seasonally adjusted annual rate of 4.10 million units, the fastest pace since February. |
| Median Sales Price | Reached $415,200, a 2.1% year-over-year increase, setting a new October record. |
| Inventory Levels | 1.52 million unsold homes, equating to a 4.4-month supply, below the pre-pandemic norm. |
| First-Time Buyer Participation | 34% of sales, up from 27% a year earlier but still below the historical average of 40%. |
| Affordability Challenges | Typical monthly mortgage payment is $1,778, up 99.3% since pre-pandemic levels. |
Frequently Asked Questions (FAQ)
What was the percentage increase in existing home sales in October?
Existing home sales increased by 1.2% in October, reaching a seasonally adjusted annual rate of 4.10 million units.
What is the current median sales price for existing homes?
The national median sales price for existing homes rose by 2.1% year-over-year to $415,200, setting a new record for October.
How many unsold homes were there at the end of October?
There were 1.52 million unsold homes at the end of October, equating to a 4.4-month supply.
What percentage of sales were first-time buyers in October?
First-time buyers accounted for 34% of sales in October, slightly up from 27% a year earlier but still below the historical average of 40%.
What is the typical monthly mortgage payment for buyers?
The typical monthly mortgage payment, assuming a 20% down payment, is $1,778, up 99.3% since pre-pandemic levels.
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