US Home Sales Hit 16-Year Low as Mortgage Rates and Prices Surge

WASHINGTON, Nov 12 (OPA) — Existing home sales dropped significantly in October, reaching the lowest levels recorded in 16 years as affordability constraints deepened across the United States. High borrowing costs collided with elevated property values, creating an insurmountable barrier for many first-time buyers.

Mortgage rates hovering near the 7% threshold continued to sideline potential purchasers who refused to lock in expensive long-term loans. Meanwhile, inventory shortages kept home prices stubbornly high, preventing any meaningful price correction despite the steep drop in demand.

Market analysts note that the frozen housing market has created a severe logjam for both buyers and sellers. Current homeowners with low mortgage rates refuse to sell and enter a much more expensive financing environment, choking off the supply of available properties.

Economists expect housing activity to remain subdued through the upcoming months unless borrowing costs register a sustained decline. Federal Reserve policy decisions regarding interest rates will dictate whether the market thaws in the near term.