Existing home sales in the United States fell to a 14-year low in September, possibly as potential buyers await lower mortgage rates as home prices remain high.
The National Association of Realtors said Wednesday that sales fell 1.0% last month to a seasonally adjusted annual rate of 3.84 million units, the lowest level since October 2010. Economists polled by Reuters predicted resales would remain unchanged at a rate of 3.86 million units.
Home resales, which make up a large portion of U.S. home sales, declined 3.5% in September on an annual basis. Home resales have struggled to recover due to rising mortgage rates.
Mortgage rates initially fell after the Federal Reserve began cutting rates last month, but solid economic data including retail sales and the annual national accounts review over the past three weeks have kept investors interested. Rates were forced to drop expectations next month.
Potential home buyers are staying away in anticipation of lower borrowing costs.
