US existing home sales edge up in Nov as mortgage rates ease

FE Team | Published: December 20, 2025 23:44:03

WASHINGTON, Dec 20 (Reuters): US existing home sales increased modestly in November amid an easing in mortgage rates, but economic uncertainty is keeping potential buyers on the sidelines.
The report from the National Association of Realtors on Friday also showed the inventory of previously owned homes fell from October to an eight-month low, limiting choices for those looking to buy. Though housing supply typically decreases heading into winter, inventory growth has slowed on a year-over-year basis, likely in response to sluggish demand. But limited supply could prevent an outright decline in home prices.
"Big headwinds remain for housing market activity," said Oliver Allen, senior U.S. economist at Pantheon Macroeconomics. "The recovery in the supply of existing homes for sale seems to have stalled over the past few months. The weak labor market will limit the number of households that are confident enough to move, and measures of affordability remain stretched."
Home sales increased 0.5 per cent last month to a seasonally adjusted annual rate of 4.13 million units, the NAR said. Economists polled by Reuters had forecast home resales would rise to a rate of 4.15 million units.
Sales surged 4.1 per cent in the Northeast, which accounts for a small share of the housing market. They increased 1.1 per cent in the densely populated South, but fell 2.0 per cent in the Midwest, regarded as the most affordable region. Sales were unchanged in the West.
Home sales declined 1.0 per cent in November on a year-over-year basis.
The rate on the popular 30-year fixed-rate mortgage plunged from 7.04 per cent in mid-January to 6.19 per cent at the end of November, data from mortgage finance agency Freddie Mac shows. It has, however, made no further improvement, averaging 6.21 per cent this week.
Mortgage rates track the benchmark 10-year U.S. Treasury yield.
The lower borrowing costs are being partially offset by a sluggish labor market, with the unemployment rate rising to more than a four-year high of 4.6 per cent in November and annual wage growth running at its slowest pace since May 2021. With housing starts and new home sales reports for September still to be published - they were delayed by the recent 43-day federal government shutdown - economists said it was difficult to assess the housing market.