Pending home sales fall 7.3% as mortgage rates climb
Signed contracts on existing homes dropped in all four regions in September.
Pending home sales fell 7.3% in September from August and 11.3% from a year earlier, with declines in all four regions, per the National Association of Realtors and CNBC. The index stood at 66.0, per the NAR. The West fell most, down 9.2%, followed by the South at 8.2%, per NAR.
NAR chief economist Lawrence Yun blamed fast-rising mortgage rates. The average 30-year fixed rate rose from about 6.8% at the start of September to 7.6% by month-end, per Mortgage News Daily as cited by CNBC. Yun said mortgage rates could be topping out but that energy prices and inflation pressure are uncertain.
It fits a weak run of housing data: see this morning's housing starts story and Monday's homebuilder sentiment report. Nationwide Financial's Ben Ayers said he expects home construction to stay weak into 2027, per CNBC.
