U.S. existing home sales hit a seven-month high in September, rising 1.5% to 4.06 million units, the highest since February, according to the National Association of Realtors. Economists expected this increase, with sales up in the Northeast, South, and West regions, but down in the Midwest, with a 4.1% year-over-year increase.

Falling mortgage rates are driving home sales, with the average rate on a 30-year fixed-rate mortgage near a one-year low of 6.27%, down from 7.04% in January. The Federal Reserve cutting interest rates to support the labor market has helped. Economic uncertainty due to import tariffs has led to muted hiring, delaying official economic data.

The government shutdown has caused delays in releasing economic data, impacting real estate. Prospective buyers in flood-prone areas are unable to get necessary insurance due to the shutdown, affecting contract closings. The National Flood Insurance Program has suspended services as a result.

The inventory of existing homes increased by 14.0% last month to 1.550 million units from a year ago, though still below pre-pandemic levels. The median existing home price rose 2.1% year-over-year to $415,200, with properties typically staying on the market for 33 days. First-time buyers accounted for 30% of sales, up from 26% last year.

Read more at Yahoo Finance: US existing home sales rise to seven-month high in September