US housing activity slows in October as mortgage rates rise

Contract signings fell 17 percent year over year in October 2026, marking the weakest October on record, Realtor.com Research reported. Rising mortgage rates caused both buyers and sellers to pause market activity. New listings dropped by 7.5 percent during the month, while overall housing inventory expanded by 7.4 percent, putting total inventory 6.6 percent below pre-pandemic levels. [1]

Mortgage rates climbed sharply throughout October alongside surging U.S. treasury yields, NAHB Eye on Housing reported. Citing data from Freddie Mac, NAHB Eye on Housing noted that the 30-year fixed-rate mortgage averaged 7.33 percent in October, which represents a 47 basis point increase from September. [7]

The pull back in October follows a shifting market dynamic recorded earlier in the autumn. As FTMQ Real Estate reported earlier, home sellers outnumbered active buyers by 62.6 percent in September 2026, creating a seller-to-buyer gap that reached a 13-year high. [14]

Despite the drop in contract signings and new listings, Realtor.com Research noted that price cuts and delistings held steady throughout October, even as active inventory grew. [1][5][8]