Lower Mortgage Rates Boost Home Sales in September
- Sales of previously owned homes in the United States increased 1.5% in September compared to August, reaching a seasonally adjusted, annualized rate of 4.06 million units, according...
- The high end of the market continues to drive sales volume, likely due to increased supply in those price tiers.
- Here's a breakdown of sales by price range (data from NAR, September 2024):
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U.S. Existing Home Sales Rise in September, Inventory Remains Tight
An ‘Open House’ sign near a home for sale in Pasadena, california, August 22, 2025. Mario tama | Getty Images
Sales of previously owned homes in the United States increased 1.5% in September compared to August, reaching a seasonally adjusted, annualized rate of 4.06 million units, according to the National association of Realtors (NAR).While slightly below analyst expectations, this represents the highest pace of annual gains, with prices 53% higher than pre-COVID levels.
Market Segmentation: High-End Homes Lead Sales Growth
The high end of the market continues to drive sales volume, likely due to increased supply in those price tiers. Homes priced above $1 million experienced a 20% increase in sales year-over-year, while those below $100,000 saw a more modest rise of just under 3%. This disparity highlights the growing affordability challenges for frist-time homebuyers and those seeking entry-level properties.
Here’s a breakdown of sales by price range (data from NAR, September 2024):
| Price Range | Year-over-Year Sales Change |
|---|---|
| Above $1 Million | +20% |
| $500,000 – $1 Million | +12% |
| $300,000 – $500,000 | +8% |
| $100,000 – $300,000 | +5% |
| Below $100,000 | +3% |
First-Time Homebuyers and Cash Sales
First-time homebuyers are gradually increasing their participation in the market, likely spurred by recent declines in mortgage rates. They accounted for 30% of sales in September, up from 26% the year prior. According to Freddie Mac, the average 30-year fixed mortgage rate currently stands at 7.79% as of October