Sales of existing US homes rise in October

WASHINGTON, Nov 22 (AFP) : Sales of previously owned homes in the United States picked up in October, industry data showed Thursday, fueling hopes that a slump in the sector may be ending.

Existing home sales rose 3.4 percent last month from September to a seasonally adjusted annual rate of 3.96 million, the National Association of Realtors (NAR) reported.

Compared with a year ago, home sales jumped by 2.9 percent, marking the first year-on-year increase since July 2021.

"The worst of the downturn in home sales could be over, with increasing inventory leading to more transactions," NAR chief economist Lawrence Yun said in a statement.

He told reporters on a call that people could be accepting a "new normal" in mortgage rates, which stand markedly higher than they were in 2021.

He expects housing demand to continue growing, given that "additional job gains and continued economic growth appear assured." The interest-sensitive housing sector has been reeling since the US Federal Reserve rapidly hiked interest rates to stamp out surging inflation in recent years.

Mortgage rates, in turn, increased as well. But levels have eased somewhat since the central bank started cutting the benchmark lending rate in September.