Existing home sales rose in October to the highest rate in eight months as buyers took advantage of lower mortgage rates, according to the National Association of Realtors (NAR) and an analysis from NAHB’s Eye on Housing.

Mortgage rates hovered between 6.5% and 7% at the beginning of 2025 due to economic and tariff uncertainty, but following the Fed’s rate cuts, mortgage rates have gradually fallen. The average mortgage rate as of Oct. 30 was 6.17%, the lowest in over a year.

Total existing home sales, including single-family homes, townhomes, condominiums and co-ops rose 1.2% to a seasonally adjusted annual rate of 4.10 million in October, the highest level since February.

The existing home inventory level was 1.52 million units in October, down 0.7% from September but up 10.9% from last year. At the current sales rate, October unsold inventory sits at a 4.4-month supply, down from 4.5 months in September but up from 4.1 months in October 2024. Inventory between 4.5 to 6 months’ supply is generally considered a balanced market.

The October median sales price of all existing homes was $415,200, up 2.1% from last year, marking the 28th consecutive month of year-over-year increases. Sales in the Midwest rose 5.3% and 0.5% in the South, while the West saw a 1.3% decrease in sales and the Northeast saw no change.