US Pending Home Sales Plunge to Record Low in September Amid Surging Mortgage Rates
- US pending home sales fell 7.3% in September.
- Index reached 66.0, a record low.
- Surging mortgage rates from 6.8% to 7.6% cited as cause.
US pending home sales experienced a sharp decline in September, falling by 7.3% month-over-month, significantly exceeding economists’ expectations for a 0.4% decrease. The National Association of Realtors reported the index at 66.0, marking a new record low, following a 0.3% increase in August. This substantial contraction also represented an 11.3% year-over-year decrease in signed contracts for existing homes. The primary factor behind the weakened housing demand was attributed to rapidly increasing mortgage rates, with the average 30-year fixed mortgage rate climbing from approximately 6.8% to 7.6% during September. This data offers an early indication of demand in the existing housing market, tracking signed contracts rather than completed transactions.