US Mortgage Rates Fall for Fourth Week but Home Sales Hit 13-Year Low

High borrowing costs and low housing inventory continue to hinder the housing market despite recent rate declines

US long-term mortgage rates fell for the fourth consecutive week, with the average rate on a 30-year mortgage dropping to 7.29% from 7.44% last week. Despite this, the rate remains significantly higher than two years ago when it was around 3%.
Sales of previously occupied US homes fell to an annualized rate of 3.79 million in October, marking a 13-year low. The decline in sales is attributed to high mortgage rates and a near-historic-low supply of homes on the market.
Home prices continue to rise, with the national median sales price in October rising 3.4% from a year earlier to $391,800. This is due to the chronic shortage of homes for sale, especially the most affordable homes.
First-time homebuyers are particularly affected by the current market conditions. They accounted for just 28% of all homes sold last month, significantly lower than the historical average of 40%.
Analysts suggest that the housing market may see some improvement in the coming months if mortgage rates continue to ease. However, the recovery is expected to be slow due to the persistent lack of housing inventory.