Home sales have plummeted to their lowest in 13 years as 8% mortgage rates batter the housing market

• Existing home sales slid 15% year-over-year in September, according to NAR data.
• Sales are the lowest in 13 years as high mortgage rates take a toll on the US housing market.

Home sales plummeted to the lowest level in 13 years last month, according to the National Association of Realtors.

Existing home sales slid 15% over the past year, slumping to a seasonally adjusted annual rate of 3.96 million in September, the NAR reported on Thursday. That's lowest number of existing home sales recorded since 2010, pointing to the tightness of the current housing market.

"As has been the case throughout this year, limited inventory and low housing affordability continue to hamper home sales," NAR chief economist Lawrence Yun said in a statement. "For the third straight month, home prices are up from a year ago, confirming the pressing need for more housing supply," he later added.

Total housing inventory fell 8.1% year-over-year in August, while the median existing home price jumped 3% year-over-year in September, according to NAR data.

Rising mortgage rates have dragged transaction volume lower. The rate on the 30-year fixed mortgage notched 8% this week, its highest level since 2000. The highest borrowing costs in over two decades have sidelined both buyers and sellers.

Mortgage rates are likely to stay elevated over the near-term, as the Federal Reserve points to a higher-for-longer interest rate outlook that will buoy borrowing costs for a range of consumer loan products.

The Fed's policy rate is now 5.25%-5.5%, the highest interest rate target range since 2001. Markets are pricing in a 37% chance of at least one more rate hike by the end of the year, per the CME FedWatch tool.