October home sales fall to their lowest pace since 2010 as rates ease

Fewer homes changed hands across the United States in October than in any month since August 2010. The National Association of Realtors (NAR) reported on November 12 that existing-home sales fell to a seasonally adjusted annual pace of 3.75 million. On the same day, Freddie Mac said the average 30-year mortgage rate slipped to 7.11%, its fourth straight weekly decline. For families deciding whether to buy, sell or hold, the two reports point in slightly different directions, and both are worth reading closely.

What the October sales report shows

NAR’s October figures reflect closed sales, so most of these deals were priced and financed in late summer and early fall, when rates were climbing. The main numbers:

• Sales ran at a 3.75 million annual pace in October, down 5.5% from September and 8.8% from October 2025.
• The median existing-home price was $416,700, only 0.4% higher than a year earlier, though it was the 40th month in a row with a year-over-year gain.
• Inventory rose to 1.59 million homes, equal to 5.1 months of supply, up from 4.4 months a year earlier.
• The typical home sold in 35 days, compared with 34 days in October 2025.
• First-time buyers made up 29% of sales, down from 32% a year earlier, while investors and second-home buyers rose to 20% from 16%.

NAR chief economist Lawrence Yun said home sales fell to their “lowest level since August 2010.” NAR noted that the average 30-year rate in October was 7.33%, according to Freddie Mac, up from 6.25% a year before, and its housing affordability index dropped to 100.7 from 107.3.

The South and the condo market

Sales fell in all four regions compared with a year earlier. In the South, which includes Florida, the October pace was 1.73 million, down 6.5% from September and 8% from October 2025. The South was the only region where the median price slipped, falling 0.4% to $360,900; the West was flat and the Northeast and Midwest posted small gains.

Condos and co-ops, a large part of the Miami market, sold at a 340,000 annual pace, down 10.5% from a year earlier, with a national median price of $365,100. Single-family homes sold at a 3.41 million pace with a median of $421,900.

Rates are easing, but only a little

Freddie Mac’s survey for the week of November 12 put the 30-year fixed rate at 7.11%, down from 7.18% a week earlier, and the 15-year at 6.45%, down from 6.57%. A year ago the 30-year averaged 6.24%. Freddie Mac’s averages assume a conventional purchase loan, 20% down and excellent credit, so many borrowers will be quoted something different. Upstormed News covered the weekly move in Mortgage Rates Fall for 4th Straight Week to 7.11%.

To put the dip in family-budget terms: on a $400,000, 30-year loan, principal and interest at 7.11% is about $2,691 a month, compared with about $2,750 at October’s 7.33% average and about $2,460 at last year’s 6.24%. That is roughly $60 a month better than October, but still about $230 a month more than a year ago, before taxes and insurance.

The relief may not last. Mortgage Professional America reported that October’s consumer price index came in hotter than expected, the 10-year Treasury yield moved back above 5% on November 12, and futures markets were pricing high odds of a Federal Reserve rate increase in December. Cotality economist Selma Hepp told HousingWire she expects activity to stay subdued until the spring 2027 buying season.

What it means

• Buyers: More homes on the market and longer selling times give you room to negotiate on price, repairs and closing costs. Budget at today’s rates rather than counting on a further drop, and ask lenders how long a rate lock lasts and what it costs.
• Sellers: Prices are roughly flat nationally and slightly lower in the South. Pricing close to recent comparable sales, and being open to credits for buyers’ closing costs, matters more than it did a year ago.
• Long-term owners: A slow sales month does not change the value of a home you plan to keep for years. It is a good time to review insurance, property taxes and maintenance, since those costs weigh on affordability as much as rates do.

At Upstormed Real Estate we follow these reports because our approach is long term: owning and building estates and investing in property over many years, not timing a single month. When Upstormed acquires holdings, we share them on the Investments page. This article is general information, not financial advice; speak with a licensed professional about your own situation.

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Sources: National Association of Realtors, Freddie Mac Primary Mortgage Market Survey, HousingWire, Mortgage Professional America