Home Sales Plunge to 12-Year Low as High Prices, Mortgage Rates Deter Buyers

Existing-home sales crashed 15% in September to lowest level since 2010 Great Recession. Contributing factors are surging mortgage rates, low inventory, and unaffordable home prices.

Housing inventory is down 8.1% from last year, limiting home sales activity. Home prices topped $306,000, up 5% since January.

Current housing predicament mirrors 1980s, when high interest rates to fight inflation caused sales to plummet 50% from 1978-1982.

Housing affordability now potentially worse than during 2008 crisis. Home prices expected to keep rising amid low inventory levels.

With mortgage rates at 8%, most homeowners locked into sub-6% rates won't sell. Reduced inventory further suppresses home sales.