US pending home sales fell by 7.3% — CNBC

In the United States, the number of pending home sales in September declined by 7.3% compared with August and by 11.3% year on year. The indicator reflects signed contracts to purchase existing homes. As CNBC reports, the market was affected by a sharp increase in mortgage rates.

Mortgage rates increased

The average rate on a 30-year fixed-rate mortgage stood at about 6.8% at the beginning of September and reached 7.6% by the end of the month, according to Mortgage News Daily. National Association of Realtors chief economist Lawrence Yun noted that housing affordability depends more on changes in mortgage rates than on employment and income growth.

Sales declined in all regions of the country. The largest monthly drop was recorded in the South, at 8.2%, as well as in the West of the United States, at 9.2%.

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Construction and builder sentiment

Housing construction also weakened in September. Single-family housing starts fell by 4.56% to an annual rate of 859,000, according to the U.S. Census Bureau. This was the lowest level since September 2025. The number of building permits, an indicator of future activity, decreased by 4% over the month.

Nationwide Financial economist Ben Ayers expects weak construction activity in 2027 as well. According to him, builders are trying to sell projects already underway by offering discounts and incentives, which puts pressure on their profits. At the same time, the builder sentiment index in October fell to its lowest level in 14 years: assessments of current sales, expectations for the future, and the buyer traffic indicator deteriorated.