US home sales slide for eighth consecutive month in Sept

WASHINGTON, Oct 21 (AFP) : Existing home sales in the US fell for an eighth straight month in September, industry data showed Thursday, as rising mortgage rates weighed on demand while analysts caution another slump is on the horizon.

The drop comes as the Federal Reserve moved aggressively to cool surging inflation, with the central bank's interest rate hikes boosting borrowing costs and bringing knock-on effects for the key housing market.

Sales of all types of homes and condos slid 1.5 percent from August, and fell in all regions compared with a year ago, said the National Association of Realtors (NAR) on Thursday.

The association added that the series of declines was the longest since 2007, when the housing market crashed.

"The housing sector continues to undergo an adjustment due to the continuous rise in interest rates," said NAR chief economist Lawrence Yun.

The sales pace in September slowed to an annual rate of 4.71 million, seasonally adjusted, just above analyst expectations.

The median home price dipped to $384,800 as well, falling for a third straight month since a record high in June.

The US housing market took off during the pandemic as Americans flush with savings capitalized on bargain mortgage rates.

Sales have been hit, however, with the Fed raising interest rates to battle inflation.