After falling for five consecutive months, Existing Home Sales rose 0.8% from October to November to a 3.82-million-unit annualized pace. per the National Association of REALTORS® (NAR). However, sales remain 7.3% lower than they were in November of last year due in part to persistent low inventory and elevated mortgage rates. 

There were 1.13 million homes available for sale at the end of October, which is below healthy levels at just a 3.5 months’ supply at the current sales pace. This low level of inventory remains supportive of home prices, as Lawrence Yun, NAR’s Chief Economist noted that, "Only a dramatic rise in supply will dampen price appreciation."

What’s the bottom line? This report measures closings on existing homes in November and likely reflects people shopping for homes in September and October, when rates peaked. Sales are expected to pick up even further in the coming months as rates have started to improve. 

On that note, Yun added that, "The latest weakness in existing home sales still reflects the buyer bidding process in most of October when mortgage rates were at a two-decade high before the actual closings in November. A marked turn can be expected as mortgage rates have plunged in recent weeks."