Existing-Home Sales Fall to Lowest Since 2010 as Mortgage Rates Stay Above 7%

Sales of previously owned U.S. homes fell 5.5 percent in October from September to a seasonally adjusted annual rate of 3.75 million, the lowest pace since August 2010, the National Association of Realtors said Thursday. Sales were down 8.8 percent from a year earlier. The average 30-year fixed mortgage rate rose to 7.33 percent in October from 6.86 percent in September, according to Freddie Mac figures cited by the NAR. The national median existing-home price rose 0.4 percent from a year earlier to $416,700, while inventory reached 1.59 million homes, or 5.1 months of supply. First-time buyers accounted for 29 percent of sales. Freddie Mac's weekly survey showed the 30-year rate easing to 7.11 percent, still above 7 percent.

Breitbart, the right-leaning source, leads with the 16-year low and headlines the story as sales plunging as mortgage rates climb. It stresses the October average 30-year rate of 7.33 percent, up from 6.86 percent in September, and says the increase threatens coming sales. The New York Times, the left-leaning source, headlines on rates staying high and affordability persisting, leading with a fourth weekly dip to 7.11 percent and quoting Brad Case of Homes.com that affordability challenges will not soon fade. ZeroHedge, an alternative source, uses 'crash' and 'collapse' language, cites a 3.86 million consensus forecast and Lawrence Yun's view of pent-up demand. All agree on the 3.75 million pace and 8.8 percent annual drop; the right stresses the October rate jump, the left the weekly dip and affordability.