Fewer Americans bought existing homes in October than in any month since 2010, even as the median price hit a record for the month. A separate Labor Department report showed layoffs still low.
Here is what the two reports released Thursday say, and what they mean if you are buying, selling or watching the economy.
The Housing Numbers
The National Association of Realtors said sales of previously owned homes fell 5.5% in October to a seasonally adjusted annual rate of 3.75 million. Economists had expected 3.85 million, according to Reuters. Sales were down 8.8% from a year earlier.
- Median price: $421,900, up 0.4% from a year ago and the highest ever for an October.
- Inventory: 1.59 million homes for sale, or 5.1 months of supply, the most since November 2015.
- Affordability: NAR’s index slipped to 100.7 from 107.3 a year earlier.
- Mortgage rates: Freddie Mac put the average 30-year fixed rate at 7.11% this week, down from 7.18%.
The Labor Market Is Holding
Initial jobless claims rose 9,000 to a seasonally adjusted 200,000 for the week ended Nov. 7, slightly above the 195,000 economists polled by Reuters expected. Continuing claims fell 20,000 to 1.697 million. Reuters described the level as consistent with a stable labor market.
Why It Matters
Prices are high, borrowing is costly and sales are slow. That pairing usually means sellers who need to move are the ones adjusting. More supply gives buyers more choice and a little more room to negotiate than they had a year ago.
The labor data matters because the Federal Reserve’s benchmark rate sits at 3.75%–4.00%, and markets are pricing a likely December hike, as we covered after the Fed’s last meeting. A steady job market gives the Fed less reason to hold off, which is bad news for anyone hoping mortgage rates fall soon.
Practical Takeaways
- Buyers: ask for seller concessions, such as help with closing costs or a rate buydown, instead of focusing only on the list price.
- Sellers: price to current sales in your neighborhood. With 5.1 months of supply, homes priced above comparable sales tend to sit.
- Everyone: compare mortgage quotes from several lenders. Rates can differ by lender even on the same day.
The catch: monthly housing data is volatile and often revised, and national figures hide big differences between regions.
More on Contoh
- Builder Confidence Hits Its Lowest Level Since 2012 as 43% Cut Prices
- October Jobs Report: 165,000 Added, Unemployment at 4.1%, and a December Fed Hike
- October CPI Rose 0.4%, but BLS Can’t Publish an Annual Inflation Rate