The National Association of Realtors reported on Thursday, November 12, 2026, that U.S. existing-home sales dropped in October to their weakest pace in more than 16 years. Completed transactions fell 5.5% from September to a seasonally adjusted annual rate of 3.75 million units, the slowest sales pace since August 2010, below consensus analyst projections. Surging long-term borrowing costs driven by rising Treasury yields priced prospective buyers out.
Freddie Mac data cited alongside the release showed the average 30-year fixed-rate mortgage reached 7.33% in October, its highest level since 2000. The benchmark 10-year U.S. Treasury yield climbed to 5.11% amid inflation concerns and heightened government debt issuance. NAR's Housing Affordability Index fell to 100.7 in October compared with 107.3 a year earlier. Sales declined across all four major U.S. census regions, with the Northeast suffering the steepest regional drop at 8.7%.
Elevated borrowing costs compounded the structural "lock-in" effect across residential real estate: millions of existing homeowners who refinanced into 3% mortgages earlier in the decade remain reluctant to list their properties and assume new loans above 7%. This supply bottleneck left mortgage originators competing over a shrinking pool of qualified transactions.
Reduced home closings directly curtail consumer spending on household appliances, furniture, and residential remodeling services. Tight post-2008 underwriting standards kept household debt service ratios healthy and inventory remains structurally constrained; median home prices have stayed resilient rather than collapsing. First-time homebuyers faced the steepest affordability hurdles, leaving all-cash investors and wealthier move-up buyers accounting for a disproportionately large share of closed October transactions. Total active housing inventory improved modestly compared with the prior year, but homes remained on the market longer, prompting sellers in high-cost metropolitan areas to offer price reductions or seller-funded mortgage rate buydowns.
