By Brett Rowland | The Center Square
(The Center Square) – Home sales increased 1.5% in September as mortgage rates dipped, according to the National Association of Realtors.
The group said September’s 1.5% increase in existing-home sales put sales on a seasonally adjusted annual rate of 4.06 million in September. It also reported a 1.3% increase in unsold inventory to 1.55 million units, equal to 4.6 months’ supply. Six months worth of supply is generally considered a balanced market.
“As anticipated, falling mortgage rates are lifting home sales,” NAR Chief Economist Dr. Lawrence Yun said. “Improving housing affordability is also contributing to the increase in sales.”
Year-over-year, existing home sales were up 4.1%. Prices were up as well.
Existing home sales gained 2.1%, pushing the median existing-home sales price to $415,200. That’s the 27th consecutive month of year-over-year price increases.
“Inventory is matching a five-year high, though it remains below pre-COVID levels,” Yun said. “Many homeowners are financially comfortable, resulting in very few distressed properties and forced sales. Home prices continue to rise in most parts of the country, further contributing to overall household wealth.”
The average 30-year fixed-rate mortgage in September was 6.35%, according to Freddie Mac. That’s down from 6.59% in August and up from 6.18% one year ago.