US Home Sales Collapse 8.4% in January Despite Lower Mortgage Rates

US existing home sales collapsed 8.4% month-over-month in January, marking the steepest monthly decline since February 2022 according to National Association of Realtors data. This sharp drop occurred despite falling mortgage rates, signaling deeper structural affordability issues in the housing market. The median selling price rose 0.9% year-over-year to $396,800, while available inventory increased 3.4% annually to 1.22 million units. NAR's Chief Economist emphasized that the decline reflects underlying affordability challenges rather than weather factors, as contracts were signed in November and December. The significant housing market weakness raises concerns about broader US economic health and could impact USD strength and housing-related equities. This dramatic pullback suggests that even lower borrowing costs may not be sufficient to revive buyer demand amid persistent affordability constraints.