Sales of existing homes are up in September, reflecting a combination of lower mortgage rates, increased supply, and moderation in prices. NAR chief economist Lawrence Yun said the rise was not a breakout from the tight band of sales that has predominated in 2025, but that it does show that consumers respond to lower mortgage rates.

Sales are up 1.5 percent in September to 4.06 million units at a seasonally adjusted annual rate after an unrevised 4.00 million units in August and 4.1 percent higher than 3.90 million units in the year ago month. The September increase matches the consensus of 4.06 million units in the Econoday survey of forecasters.

The September rise is concentrated in resales of single-family homes which are up 1.7 percent to 3.69 million units while resales of condos and co-ops are flat.

Sales of existing homes are for contracts closed. In September, sales are for contracts mainly taken out in August when the Freddie Mac weekly average for a 30-year fixed rate mortgage fell as low as 6.56 percent in the August 28 week compared to 6.72 percent in the July 31 week. There is potential for another pick up in the sales pace in October as the rate fell as low as 6.26 percent in the September 18 week. Yun said that NAR reports from realtors about closings of new construction shows September up 11.2 percent from a year ago which is probably related to falling mortgage rates.

The months' supply of homes available for sale is unchanged at 4.6 in September from August and larger than 4.2 in September 2024. The median price of an existing home is down 1.7 percent to $415,200 in September from August, but up 2.1 percent from a year earlier. The price of an existing home typically rises in the first half of the year and declines in the second half. Nonetheless, on a year-over-year basis, home prices continue to increase steadily.

Existing homes listed remain on the market for an average of 33 days in September, up from 31 days in August and 28 days in September 2024. The share of first-time buyers is up to 30 percent in September from 28 percent in August and 26 percent in September 2024.

The consensus sees sales up marginally at a 4.06 million rate in September versus 4.0 million in August.

Existing home sales tally the number of previously constructed homes, condominiums and co-ops in which a sale closed during the month. Existing homes (also known as home resales) account for a larger share of the market than new homes and indicate housing market trends.

This provides a gauge of not only the demand for housing, but the economic momentum. People have to be feeling pretty comfortable and confident in their own financial position to buy a house. Furthermore, this narrow piece of data has a powerful multiplier effect through the economy, and therefore across the markets and your investments. By tracking economic data such as home resales, investors can gain specific investment ideas as well as broad guidance for managing a portfolio.

Even though home resales don't always create new output, once the home is sold, it generates revenues for the realtor. It brings a myriad of consumption opportunities for the buyer.

Refrigerators, washers, dryers and furniture are just a few items home buyers might purchase. The economic"ripple effect" can be substantial especially when you think a hundred thousand new households around the country are doing this every month. Since the economic backdrop is the most pervasive influence on financial markets, home resales have a direct bearing on stocks, bonds and commodities. In a more specific sense, trends in the existing home sales data carry valuable clues for the stocks of home builders, mortgage lenders and home furnishings companies.