WASHINGTON, Nov 21 Reuters U.S. existing home sales rebounded sharply in October, posting the first annual gain since mid2021, as buyers rushed into the market to take advantage of a brief decline in mortgage rates.

Home sales jumped 3.4 last month to a seasonally adjusted annual rate of 3.96 million units, the National Association of Realtors said on Thursday. Economists polled by Reuters had forecast home resales rebounding to a rate of 3.93 million units. Sales slumped to a rate of 3.83 million units in September, which was the lowest since October 2010.

Sales increased 2.9 yearonyear, the first annual rise since July 2021.

The worst of the downturn in home sales could be over, with increasing inventory leading to more transactions, said Lawrence Yun, the NAR39;s chief economist.

October39;s homes sales likely reflected contracts signed in August and September, when mortgage rates were declining in anticipation of the Federal Reserve launching its policy easing cycle. The U.S. central bank cut its policy rate by an unusually large halfpercentagepoint in September, its first reduction in borrowing costs since 2020.

The Fed delivered another 25 basis points reduction this month, which lowered its benchmark overnight interest rate to the 4.504.75 range.

Mortgage rates have erased all the decline since August as U.S. Treasury yields have risen on strong economic data and investor fears that Presidentelect Donald Trump39;s policies, including higher tariffs on…