ShareNewsweek
The average 30-year mortgage rate has declined throughout 2024 so far, and has dropped further following the Federal Reserve's cut to its key interest rate in mid-September.
Recent years have been tough for prospective buyers waiting to get on the housing ladder. Aside from high borrowing rates being off-putting, high inflation has also affected the affordability of buying a home for many Americans.
According to the National Association of Realtors® (NAR), existing home sales dropped by 2.5 percent from July to a seasonally adjusted annual rate of 3.86 million.
"Home sales were disappointing again in August, but the recent development of lower mortgage rates coupled with increasing inventory is a powerful combination that will provide the environment for sales to move higher in future months," said Lawrence Yun, the NAR's chief economist.