September Existing Home Sales Rise Despite Elevated Mortgage Rates, NAR Data Show

03:49 PM EDT, 10/13/2026 (MT Newswires) -- US existing home sales rose in September even as mortgage rates moved higher, with TD Economics saying elevated borrowing costs are likely to weigh on sales ahead. Sales increased 1.5% sequentially to a seasonally adjusted annual rate of 3.99 million units last month, the National Association of Realtors said Tuesday. The consensus was for a 0.8% decline from August's initially reported tally of 3.98 million units. The August rate was revised down to 3.93 million units, NAR data showed Tuesday. "Despite the small monthly gain on a seasonally adjusted basis, August and September marked the two slowest months for home sales this year," NAR Chief Economist Lawrence Yun said in a statement. "Further increases in mortgage rates in recent weeks mean fewer buyers can qualify to purchase a home." The average 30-year fixed-rate mortgage rose to 6.86% last month from 6.67% in August, the NAR said, citing Freddie Mac data. "The recent surge in mortgage rates will make it difficult for September's modest sales gain to be sustained," TD Economics economist Admir Kolaj said in a note. "The longer rates remain elevated, the greater the likelihood that weakness spreads from transaction activity to prices." Single-family home sales rose 2% sequentially to a seasonally adjusted annual rate of 3.64 million units in September, while condominiums and co-op sales fell 2.8% to 350,000 units, NAR data showed. The median existing-home sales price decreased to $417,500 last month from $427,700 in August, but was up 1.3% year over year, according to NAR. "A pullback on demand will weigh on home prices, although that's likely to be countered to some degree by sellers stepping back from the market," Nancy Vanden Houten, lead US economist at Oxford Economics, said in a note e-mailed to MT Newswires. Housing inventory reached 1.60 million units in September, up 1.9% month on month, according to NAR data. "Higher inventory and lengthening days on market give buyers improved negotiating power," Yun said. "Home sellers need to be realistic about local market conditions, which could require price discounts and other incentives to attract buyers." On Monday, Redfin said pending home sales in the US declined the most in more than three years last month as mortgage rates jumped above 7%.