Existing home sales in the United States increased by 1.5% in September 2025, showing signs of strength in the housing market. Buyers responded to lower mortgage rates and improved affordability, particularly in the Northeast, South, and West regions.
Economists say the rise reflects growing confidence among homebuyers. Falling borrowing costs have made monthly mortgage payments more manageable, encouraging more people to enter the market. This trend comes after several months of slower activity in the housing sector.
In the Northeast, existing home sales saw a notable increase. Moderate price growth and lower interest rates helped attract buyers who had been waiting on the sidelines. The South also experienced gains, driven by strong demand in suburban and urban areas alike. The West reported higher sales, led by cities where housing costs had previously been a barrier for many households.
Industry experts note that affordability has become a key factor in boosting sales. Home prices, while still high compared to historical averages, have stabilized in some markets, giving buyers more room to act. Combined with declining mortgage rates, this has made purchasing a home more feasible for a wider range of Americans.
Mortgage rates, which had peaked earlier in the year, have gradually declined. The average 30-year fixed-rate mortgage fell to a level not seen in months. This decrease has lowered the cost of borrowing and increased the pool of potential buyers, supporting the rise in existing home transactions.
Analysts also point out that the increase is part of a larger trend of gradual market recovery. The housing market has faced challenges, including higher interest rates and inventory shortages, but September’s numbers suggest that conditions are improving.
Housing inventory, while still limited in many regions, has not constrained sales growth this month. Sellers are responding to market demand, and many buyers are willing to act quickly to take advantage of favorable financing conditions. The balance between supply and demand appears to be stabilizing, contributing to steady sales growth.
Despite the positive trend, some experts caution that broader economic factors could affect future sales. Inflation concerns, potential interest rate adjustments, and changes in local housing policies may influence buyer behavior. However, current indicators point to a more accessible market for those looking to purchase existing homes.
Overall, September 2025 marks a promising month for the U.S. housing sector. The combination of lower mortgage rates, improved affordability, and regional growth in key markets is helping sustain sales momentum. Buyers and sellers alike are benefiting from these conditions, signaling confidence in the stability of the housing market.
As the year progresses, analysts will continue monitoring trends in pricing, interest rates, and inventory levels. For now, the 1.5% rise in existing home sales provides a positive outlook for the market and suggests that more Americans may find homeownership within reach.
