High mortgage rates push existing-home sales to a 2010 low

Mortgage costs drive sales to their lowest level since 2010

Existing-home sales fell to their lowest level since August 2010 as elevated mortgage rates further reduced what buyers could afford. October 2026 sales dropped 5.5% from September and 8.8% from a year earlier, according to National Association of Realtors data covered by Mortgage News Daily.

The seasonally adjusted annual sales rate declined to 3.75 million. That is an annualized measure based on October's pace, not the number of homes sold during the month. Mortgage News Daily's rate index showed a 7.50% average for a 30-year fixed mortgage on November 13, while the report noted that borrowing costs had tested levels not seen since 2000.

Inventory moved in the opposite direction. There were 1.59 million homes available, up 1.3% from September and 4.6% from October 2025. That represented 5.1 months of supply, compared with 4.7 months in September and 4.4 months one year earlier. Median market time increased to 35 days from 33 days.

Prices have not fallen nationally, but their momentum is close to flat. The median existing-home price reached $416,700, only 0.4% above October 2025. That was the 40th consecutive annual increase, yet it offered little evidence that sellers can keep raising asking prices without resistance.

A smaller buyer pool changes the quality of offers

For sellers, the central problem is not simply that mortgage rates are high. It is that each rate increase raises a buyer's monthly payment without improving the home being purchased. Some households respond by lowering their maximum price, choosing a smaller property or leaving the market altogether.

The remaining buyer pool may be more cautious and payment-sensitive. A buyer who could technically qualify at the asking price may still request a seller credit, repair allowance or price reduction to keep the transaction affordable. Sellers should compare the likely net proceeds of each offer rather than focusing only on the headline price.

For example, an offer at full asking price can be weaker than a slightly lower offer if the higher bid includes substantial credits, a broad inspection contingency or uncertain financing. Financing type, down payment, appraisal exposure, requested concessions and the buyer's available cash all affect the probability that a contract reaches closing.

The increase to 35 median days on market is also important. It is only a two-day monthly change, but it fits the broader picture of slower sales and growing supply. Sellers who budgeted around an immediate contract should leave room for additional mortgage payments, taxes, insurance, utilities and maintenance. Those carrying costs reduce net proceeds even when the eventual sale price does not change.

Regional figures show where sellers face the most pressure

The national result hides substantial regional differences. October sales were unchanged from September in the Northeast, where the median price was $519,600 and prices were 3.2% higher than a year earlier. Midwest sales declined 3.2%, while its $324,300 median price was up 1.5% annually.

Conditions were softer in the South and West. Southern sales fell 6.5% from September, and the regional median price of $360,900 was 0.4% below a year earlier. Western sales dropped 9.7%, the steepest monthly decline among the four regions, while the $624,300 median price was unchanged year over year.

These regional figures are useful context, not a pricing formula. A seller's competition is usually the active and recently sold inventory in the same neighborhood, school area, price bracket and property type. A well-kept home in a constrained local segment can still attract strong interest even when national sales are weak. A property competing against several similar listings may need sharper pricing despite a positive national median.

Property type matters as well. Single-family sales ran at a 3.41 million annual pace, down 5.8% from September and 8.6% from a year earlier. Condo and co-op sales ran at 340,000, down 2.9% monthly and 10.5% annually. Sellers of attached properties should pay particular attention to association fees, insurance costs and building-specific financing issues because buyers evaluate those expenses alongside the mortgage payment.

Pricing discipline matters more than testing the market

In this environment, an ambitious list price can be expensive. A home that sits while better-priced alternatives sell may eventually require a reduction, and buyers can interpret accumulated market time as negotiating leverage. The safer approach is to anchor the price to recent comparable sales while also examining today's active competition and pending listings.

Sellers should ask for a net sheet under more than one scenario. One version might assume a clean offer near the asking price. Another should include a lower sale price, buyer closing-cost credit, repair request and extra weeks of carrying costs. This makes the trade-offs visible before negotiations begin.

Preparation can protect leverage without requiring a major renovation. Resolve obvious maintenance concerns, document completed work, make access easy for showings and organize disclosures before listing. When buyers have more choices, preventable uncertainty can become a reason to move on or demand protection in the contract.

It is also worth deciding in advance which terms matter most. A seller who needs certainty may value stronger financing and a manageable inspection clause over the highest nominal bid. A seller with flexibility may accept a longer closing or a targeted credit if the resulting net proceeds remain sound.

The larger message is straightforward: homes are still selling, and national prices remain marginally positive, but the market is processing fewer transactions under much tighter affordability. Sellers should plan for a narrower buyer pool, more comparison shopping and less tolerance for pricing that runs ahead of local evidence. An anonymous property analysis can help organize public records and market signals, but the final decision should reflect the home's condition, direct competition and the seller's actual cost of waiting.