US used home sales fell to a 14-year low in September

Sales fell 1.0% last month to a seasonally adjusted annual rate of 3.84 million units, the lowest since October 2010; Buyers expect lower borrowing costs

WASHINGTON (Reuters) – U.S. existing home sales fell to a 14-year low in September, as home prices continued to rise and buyers could expect lower mortgage rates.

Sales last month fell 1.0% to a seasonally adjusted annual rate of 3.84 million units, the lowest since October 2010, the National Association of Realtors said Wednesday. Economists polled by Reuters had forecast resales to be unchanged at 3.86 million units.

Home resales, which make up the bulk of U.S. home sales, fell 3.5% in September on a year-over-year basis. As mortgage rates continue to rise, home resales struggle to recover.

Mortgage rates initially fell after the Federal Reserve began cutting rates last month, but firmer economic data, including retail sales and annual national accounts reviews, have forced investors to abandon expectations of another 50 basis point cut in rates next month.

Potential homebuyers stay away in anticipation of lower borrowing costs.