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Existing home sales fell in September as home hunters remain hesitant to buy a home despite a cut in mortgage rates during the month.

Existing home sales fell 1.0% from August to a seasonally adjusted annual rate of 3.84 million, the National Association of Realtors said Wednesday. That was the lowest rate since October 2010. Economists polled by Bloomberg expected growth of 3.88 million in September.

On an annual basis, condominium sales fell 3.5% in September. The average home price rose 3.0% from last September to $404,500, marking the 15th consecutive month of annual price increases.

“Home sales were essentially flat at about 4 million units over the past 12 months,” NAR chief economist Lawrence Yun said in a news release.

There were significant challenges weighing on sales activity, including lack of inventory, rising prices and increased mortgage rates. Last month, however, those factors changed.

The Federal Reserve cut its key interest rate by half a percentage point in September. Even if the Central Bank does not set mortgage rates, its actions influence the direction of their development.

Mortgage rates hit their lowest level since February 2023 ahead of the Fed's easing decision, while listing inventories increased.

But overall, that wasn't enough to attract buyers.

“Some consumers are hesitant to make major expenses such as buying a home before the upcoming election,” Yun said.