Existing home sales in the United States fell 5.5% over the month to an annualized rate of 3.75 million units in October, below forecasts for 3.86 million, according to data from the National Association of Realtors. The October reading marked a decrease from 3.99 million in the previous month, revised up from 3.97 million. Total existing home sales fell 8.8% over the year. Home prices continued to rise, with the median sales price rising 0.4% over the year to $414,900. Total housing inventory slightly increased to a 5.1-month supply of unsold inventory, up from a 4.7-month supply in September and up from 4.4 a year ago.
The ABA Office of the Chief Economist views weaker-than-expected existing home sales as further evidence that elevated mortgage rates and affordability pressures continue to weigh on housing activity. Despite rising inventory, home prices continue to rise. For banks, continued weakness would likely keep mortgage originations, refinancing activity and related fee income muted.
