Housing Market Slows Sharply Amid Rising Mortgage Rates
New data shows that pending home sales dropped by 7.3% month-over-month and fell 11.3% year-over-year in September, reflecting a significant slowdown in the housing market driven largely by rising mortgage rates. The average rate on the 30-year fixed mortgage increased from around 6.8% to 7.6% during the month, making home purchases less affordable for many buyers. Home construction also declined sharply, with single-family housing starts falling 4.56% in September to an annualized pace of 859,000—the lowest since September 2025. Builders are struggling as they attempt to clear existing projects amid price cuts and incentives that erode profit margins. Homebuilder sentiment reached a 14-year low according to the National Association of Home Builders (NAHB), with declines in current sales, future expectations, and buyer traffic. Analysts suggest construction activity may remain weak into early next year due to ongoing affordability issues and high borrowing costs.
Topics: homebuilder sentiment housing market mortgage rates pending home sales
Part of the story Mortgage Rate Lock-In Effect Continues to Constrain Housing Market Supply (2 articles)