lowest

Home sales dropped 5.5 percent in October, the lowest level since August 2010.

Sales of previously owned homes in the US have hit the lowest level since 2010 as mortgage rates hover above 7 percent.

The National Association of Realtors (NAR) said on Thursday that home sales dropped 5.5 percent in October to a seasonally adjusted annual rate of 3.75 million units. That was the lowest level since August 2010.

“Home buying is difficult when mortgage rates have climbed to their highest levels since 2000, aside from a single month in 2023. As a result, home sales fell to their lowest level since August 2010,” said NAR Chief Economist Lawrence Yun.

He said, “It is just a tough market for buyers and sellers.”

“Sales decreased by 8.8 percent year-over-year,” the NAR report found. “Month-over-month sales declined in the Midwest, South and West and held steady in the Northeast. Year-over-year sales declined in all four regions.”

The home sales used in the report are counted at the closing of a contract and are a look at previously occupied ones. October’s sales likely reflected contracts signed in August and September.

“Despite fewer transactions in October, the 88 million homeowners across the country are largely in a comfortable financial position due to sizable housing wealth accumulation,” said the report.

First-time buyers accounted for just 29 percent of home purchases last month, down from 31 percent in September and 32 percent in October last year, NAR said. First-time buyers have historically made up closer to 40 percent of home sales.

The US housing market has been in a slump since 2022, when mortgage rates increased from pandemic-era lows. Sales of previously occupied US homes were essentially flat last year, stuck at a 30-year low. Yun expects home sales this year will likely end up lower than in 2025.

The average 30-year fixed-rate mortgage was 7.33 percent in October, according to the Federal Home Loan Mortgage Corporation, more commonly known as Freddie Mac, up from 6.86 percent in September and 6.25 percent one year ago.

The rate, however, averaged 7.18 percent last week, down from 7.24 percent in the previous week.

Rates on home loans are influenced by inflation, Federal Reserve policy and bond-market investors’ expectations for the economy, among other factors. They generally follow the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing home loans.

Until the past few weeks, mortgage rates had been on the rise since late February, when the US war with Iran began, pushing up the price of oil and driving inflation higher. The run-up in rates also reflected heightened bond market volatility, which led to rising yields on US Treasuries.

Data show a 42 percent drop in forest clearance from a year earlier, giving Lula a boost before the election run-off.

Deforestation in Brazil’s Amazon rainforest has fallen to its lowest level since records began in 1988, according to official figures that give a boost to President Luiz Inacio Lula da Silva days before a presidential run-off.

Brazil’s space research agency, Inpe, said on Friday that 3,335 square kilometres (1,288 square miles) of forest were cleared in the 12 months through July, about 42 percent less than the year before.

The previous record low was 4,571 sq km (1,765 sq miles) in 2011-12, while annual losses peaked at nearly 30,000 sq km (nearly 11,600 sq miles) in the mid-1990s, according to Inpe’s Prodes satellite programme, which measures from August to July because cloud cover is lower in mid-year.

“It’s an absolutely stratospheric drop…it’s like a dream,” Environment Minister Joao Paulo Capobianco said at a news conference in Brasilia.

Marcio Astrini of the climate advocacy group Observatorio do Clima called the figures “a historic achievement” and said they show that “with political will, it is possible to curb deforestation and greenhouse gas emissions”.

President Lula wrote on X: “Our goal is to achieve zero illegal deforestation by 2030.”

Lula took office in 2023 pledging to end illegal deforestation by 2030, after clearing soared to a 15-year high under his far-right predecessor, Jair Bolsonaro. The Amazon lost about 11,600 sq km (about 4,480 sq miles) a year on average during Bolsonaro’s 2019-2022 term, almost 60 percent more than in the previous four years.

Deforestation has fallen every year since 2022 and is down 71.2 percent over four years. The AFP news agency attributes the drop to greater monitoring and stiffer penalties for illegal logging.

Lula faces Bolsonaro’s eldest son, Senator Flavio Bolsonaro, in the election run-off on October 25, with polls showing them neck and neck.

Flavio pledged in his manifesto to strengthen environmental oversight in the Amazon, focus enforcement on organised crime rather than extractive workers and small farmers, and end “illegal deforestation” by 2029.

He has also praised his father, who is serving a 27-year sentence under house arrest for coup plotting, for opposing what he calls a “radical environmental agenda”.

Deforestation in the Cerrado savanna, south of the Amazon, also fell by about 24 percent, to 5,517 sq km (2,130 sq miles), the lowest since records began in 2001.