Sales of existing homes in the United States rose by 1.5% in September 2025, reflecting improved affordability and a more active housing market. Gains were seen across the Northeast, South, and West regions, signaling broader market stability.
Experts attribute the uptick to declining mortgage rates, which have made financing homes more accessible for buyers. Lower borrowing costs increase purchasing power, encouraging prospective homeowners to enter the market and prompting activity among sellers.
The Northeast, South, and West showed notable growth in sales, while other regions remained steady. Analysts note that regional variations reflect differences in supply, local demand, and economic conditions. Markets with high inventory levels and affordable prices experienced the strongest momentum.
Improved housing affordability is also contributing to the rise in transactions. As home prices stabilize in many areas, buyers who had previously delayed purchases are finding opportunities to enter the market. Economists say this trend helps balance supply and demand, supporting overall market health.
The increase in existing-home sales comes amid broader housing market adjustments. Rising interest rates earlier in the year had slowed buyer activity, but the recent drop in mortgage rates is easing financial pressure on households. This encourages more families to move forward with home purchases.
Industry observers highlight that existing-home sales are a key indicator of housing market performance. Strong sales reflect buyer confidence and signal healthy economic activity, as home purchases often trigger spending on related services, renovations, and furnishings.
Financial advisors also emphasize that buyers should consider long-term affordability when entering the market. While lower mortgage rates and rising inventory provide opportunities, planning for maintenance costs, insurance, and property taxes remains essential.
The uptick in sales is expected to positively impact construction and real estate services. Although existing-home transactions do not directly create new housing units, higher activity can stimulate demand for renovations, remodeling, and related services, benefiting contractors and local economies.
Analysts predict that continued monitoring of mortgage rates, home prices, and regional trends will be essential to understanding the trajectory of the housing market in the coming months. A sustained increase in affordability could further support sales growth and stabilize market conditions.
Overall, the 1.5% rise in existing-home sales in September 2025 signals a cautiously optimistic outlook for the U.S. housing market. Lower mortgage rates, better affordability, and strong regional performance are contributing to healthier market activity and improved prospects for buyers and sellers alike.
