LOS ANGELES (AP) — Sales of previously occupied U.S. homes slowed in September to the weakest annual pace in nearly 14 years even as mortgage rates eased and the supply of properties on the market continued to climb.
Existing home sales fell 1% last month, from August, to a seasonally adjusted annual rate of 3.84 million, the National Association of Realtors said Wednesday. That marks the second straight monthly decline and the slowest annual sales pace since October 2010 when the housing market was still in a deep slump following the late-2000s real estate crash.
Sales fell 3.5% compared with September last year. On a regional basis, sales fell in the Northeast, South and Midwest last month from a year earlier, but rose in the West.
Overall, the latest home sales were short of the 3.9 million pace economists were expecting, according to FactSet.
"The factors that would drive higher home sales —- such as mortgage rates meaningfully lower now compared to one year ago, inventory beginning to increase and, of course, jobs continuously being added to the economy —- and yet home sales are stuck at low levels,” said Lawrence Yun, the NAR’s chief economist.
Despite the slower sales pace, home prices increased on an annual basis for the 15th consecutive month. The national median sales price rose 3% from a year earlier, to $404,500.
While the rate of price growth has been slowing, the latest median sales price is 49% higher than it was five years ago, before the pandemic. By comparison, wages grew 25% in the same period, Yun noted.
Years of soaring home prices have helped put homeownership out of reach of many Americans, making housing a key political issue for voters in next month's election.
The U.S. housing market has been in a sales slump dating back to 2022, when mortgage rates began to climb from pandemic-era lows. Existing home sales sank to a nearly 30-year low last year as the average rate on a 30-year mortgage surged to a 23-year high of nearly 8%, according to mortgage buyer Freddie Mac.
Mortgage rates mostly eased since July in anticipation of last month's move by the Federal Reserve to cut its main interest rate for the first time in more than four years and to signal further cuts through 2026. While the central bank doesn’t set mortgage rates, its policy pivot cleared a path for mortgage rates to generally go lower.
The average rate on a 30-year mortgage fell to 6.08% four weeks ago — its lowest level in two years — but has edged higher since then, reaching 6.44% last week.
“Falling mortgage rates in July and August were expected to bring more buyers into the market, but some home shoppers may be holding out for rates to fall further,” said Lisa Sturtevant, chief economist at Bright MLS. “Others may be taking a wait-and-see approach in the lead up to the presidential election.”
Economists generally expect mortgage rates to remain near their current levels, at least this year. Fannie Mae projects the rate on a 30-year mortgage will average 6.2% in the October-December quarter and decline to an average of 5.7% in the same quarter next year.
As sales have slowed, the inventory of homes for sale has kept ticking higher. There were 1.39 million unsold homes at the end of September, up 1.5% from August and 23% from September last year, NAR said.
That translates to a 4.3-month supply at the current sales pace, up from a 3.4-month pace at the end of September last year. Traditionally, a 5- to 6-month supply is considered a balanced market between buyers and sellers.
Another factor helping lift the inventory of homes on the market: Properties are taking longer to sell than a year ago.
Homes typically stayed on the market for 28 days last month before they were sold, up from 21 days a year earlier.
“Even with the recent increase in inventory one can say that’s helping loosen up the market, but it’s still far short of what would be considered a more normal inventory level,” Yun said.
Still, in a plus for home shoppers, fewer homes are receiving multiple offers. Some 20% of the homes that sold last month were bought for more than their original list price, down from 26% in September last year.
First-time homebuyers who don’t have any home equity to put toward their down payment continue to have a tough time getting into the housing market. They accounted for just 26% of all homes sold last month, matching the all-time low from August. It was down from 27% in September last year. They’ve accounted for 40% of sales historically.
Homebuyers who can afford to sidestep mortgage rates and pay all cash for a home accounted for 30% of sales last month, up from 29% a year earlier.
A sale sign stands outside a home on the market Thursday, Oct. 17, 2024, in the east Washington Park neighborhood of Denver. (AP Photo/David Zalubowski)
CLEVELAND (AP) — During an impassioned pregame speech, Jameis Winston asked his Browns teammates to believe.
They do now.
Winston threw a 38-yard touchdown pass — his third of the game — to Cedric Tillman with 59 seconds left as Cleveland stunned Lamar Jackson and the Baltimore Ravens 29-24 on Sunday to snap a five-game losing streak.
Making his first start in more than two years and replacing injured starter Deshaun Watson, Winston capped an emotional week for the Browns (2-6) by leading them to an upset of their AFC North rival.
“It felt amazing,” said Winston, who passed for 334 yards.
The improbable win came just days after Watson's third season with Cleveland ended with him rupturing an Achilles tendon. Also, the Browns and their fan base were mourning the loss of beloved play-by-play broadcaster Jim Donovan, who died Saturday following a long battle with cancer.
Following the game, coach Kevin Stefanski told his players he'll present the game ball to Donovan's family.
“This one's for Jim,” Stefanski said.
The Browns had to withstand a late comeback attempt by Jackson, who drove the Ravens (5-3) to Cleveland's 24 in the final seconds. Jackson bought time to avoid sacks and threw two incompletions into the end zone, the second to Zay Flowers as time expired.
When the game ended, Jackson slammed his helmet to the ground in front of Baltimore's bench as the Ravens' five-game winning streak ended with a surprising loss.
“You can look at the Browns’ record and say that’s a sorry team, but this is the NFL,” said Jackson, who completed 23 of 38 passes for 289 yards and two touchdowns. “Any week can be your day. We didn’t make the plays. We didn’t make the calls to win the game.”
Winston finished 27 of 41 in his first start since Sept. 25, 2022, for New Orleans. The 30-year-old took over Cleveland's offense this week after Watson went down and provided needed leadership.
Winston did what Watson couldn’t as the Browns scored their most points this season and he eclipsed 300 yards passing, something his teammate hasn’t done in 19 starts in his tumultuous tenure in Cleveland.
“He was very confident in the huddle. He was talking the whole time. Some of the stuff he was saying was a little bit out there, but he was ready to go," guard Joel Bitonio said. "Obviously, he threw the ball well — 300 yards, three touchdowns. The game-winner. He was a lot of energy. But he's been like that since he's been here, so it was expected."
Derrick Henry's 2-yard TD run with 2:36 left gave the Ravens a 24-23 lead, but Winston, who signed a one-year deal as a free agent in March, got some help from Baltimore safety Kyle Hamilton on the game-winning drive.
Winston overthrew Elijah Moore on first down and Hamilton was in perfect position to make the interception but had the ball bounce out of his hands.
“I started praying instantly,” Winston said.
“Oh my God!” Moore said. “The football gods were with us for sure.”
Given new life, on the next play Winston lofted a deep ball down the middle to Tillman, who also caught a 22-yard TD pass in the third quarter.
Before Cleveland put together that last rally, Jackson had engineered a six-play, 91-yard scoring drive with his legs and arms. Henry finished that possession with his short TD to tie Hall of Famer Barry Sanders for 10th place on the career scoring list.
Winston’s performance — he also had a 23-yard TD pass to David Njoku -- gives the Browns some hope in a season that was going sideways. A year ago, Joe Flacco came out of semi-retirement after Watson got hurt and led the Browns to the playoffs.
Winston isn't making any promises.
“A win like this is required to change the season around,” Winston said. “We have a long way to go."
Dustin Hopkins kicked field goals of 28, 33 and 48 yards for the Browns.
UP AND RUNNING
Nick Chubb ran for 52 yards in his second game back after suffering a season-ending knee injury in 2023. He moved into third place on Cleveland’s career rushing list.
Chubb (6,585) passed Mike Pruitt (6,540) on a carry in the first half and now only trails Hall of Famers Jim Brown (12,312) and Leroy Kelly (7,274) in club history.
SCARY MOMENT
Browns linebacker Jeremiah Owusu-Koramoah was immobilized on a back board and carted off late in the third quarter. The team said he was taken to a hospital with a neck injury, but has movement in his extremities.
INJURIES
Ravens: DE Brent Urban sustained a concussion in the first quarter. ... NT Michael Pierce (calf) limped off in the second quarter and didn’t return.
Browns: Top CB Denzel Ward went to the locker room midway through the third quarter for further evaluation for a possible concussion. The team said he has been placed in protocol. Ward has a history of head injuries with five known concussions during his NFL career.
UP NEXT
Ravens: Host Denver on Nov. 3.
Browns: Host the Los Angeles Chargers on Nov. 3.
AP NFL: https://apnews.com/hub/nfl
Cleveland Browns quarterback Jameis Winston (5) celebrates after a win against the Baltimore Ravens in an NFL football game in Cleveland, Sunday, Oct. 27, 2024. (AP Photo/David Richard)
Cleveland Browns wide receiver Cedric Tillman (19) makes a catch for a touchdown against the Baltimore Ravens during the second half of an NFL football game in Cleveland, Sunday, Oct. 27, 2024. (AP Photo/David Richard)
Cleveland Browns wide receiver Cedric Tillman (19) celebrates after a touchdown against the Baltimore Ravens during the second half of an NFL football game in Cleveland, Sunday, Oct. 27, 2024. (AP Photo/Sue Ogrocki)
Baltimore Ravens quarterback Lamar Jackson (8) is tackled by Cleveland Browns defensive end Isaiah McGuire (57) during the first half of an NFL football game in Cleveland, Sunday, Oct. 27, 2024. (AP Photo/Sue Ogrocki)
Baltimore Ravens quarterback Lamar Jackson (8) cuts past Cleveland Browns linebacker Jeremiah Owusu-Koramoah (6) during the first half of an NFL football game in Cleveland, Sunday, Oct. 27, 2024. (AP Photo/Sue Ogrocki)
Baltimore Ravens quarterback Lamar Jackson (8) throws in from top Cleveland Browns defensive end Myles Garrett (95) during the first half of an NFL football game in Cleveland, Sunday, Oct. 27, 2024. (AP Photo/Sue Ogrocki)
Cleveland Browns tight end David Njoku (85) goes in for a touchdown after a catch over Baltimore Ravens safety Eddie Jackson (39) during the second half of an NFL football game in Cleveland, Sunday, Oct. 27, 2024. (AP Photo/Sue Ogrocki)
Baltimore Ravens quarterback Lamar Jackson (8) escapes from Cleveland Browns defensive end Myles Garrett (95) during the second half of an NFL football game in Cleveland, Sunday, Oct. 27, 2024. (AP Photo/David Richard)
Cleveland Browns defensive end Za'Darius Smith (99) celebrates a sack of Baltimore Ravens quarterback Lamar Jackson (8) during the second half of an NFL football game in Cleveland, Sunday, Oct. 27, 2024. (AP Photo/David Richard)
Cleveland Browns defensive end Za'Darius Smith (99) sacks Baltimore Ravens quarterback Lamar Jackson (8) during the second half of an NFL football game in Cleveland, Sunday, Oct. 27, 2024. (AP Photo/David Richard)
Cleveland Browns quarterback Jameis Winston (5) throws over Baltimore Ravens defensive tackle Broderick Washington (96) during the first half of an NFL football game in Cleveland, Sunday, Oct. 27, 2024. (AP Photo/Sue Ogrocki)
Cleveland Browns quarterback Jameis Winston (5) throws against the Baltimore Ravens during the first half of an NFL football game in Cleveland, Sunday, Oct. 27, 2024. (AP Photo/Sue Ogrocki)
Cleveland Browns quarterback Jameis Winston (5) celebrates a touchdown pass to wide receiver Cedric Tillman (19) against the Baltimore Ravens during the second half of an NFL football game in Cleveland, Sunday, Oct. 27, 2024. (AP Photo/David Richard)
