From BigGo Finance · BigGo Finance · · 1m
US Home Sales Drop to Record Low as Mortgage Rates Rise
US home sales fall 7.3% to record low as mortgage rates near 7.4%.
In brief
US home sales fall 7.3% to record low as mortgage rates near 7.4%. US pending home sales dropped 7.3% in September to a record low of 66.0, with mortgage rates climbing to 7.40%. Originally reported by BigGo Finance.
US Pending Home Sales Drop
US pending home sales fell 7.3% in September to a record low of 66.0.
“Market conditions weakened in september due to fast-rising mortgage rates”
Mortgage Rates Climb to 7.40%
The 30-year fixed mortgage rate averaged 7.40% in mid-October, up from 6.8% at month start.
“The 30-year fixed rate averaged 7.40% in the week ended october 15”
Year-Over-Year Decline
Contracts dropped 11.3% year over year, with declines in all four US regions.
“The decline was far steeper than the 0 5 percent slippage economists had expected”
Housing Starts Fall
Single-family housing starts dropped 4.56% to 859,000 annualized, the lowest since 2025.
“Single-family housing starts dropped 4 56 percent to an annualized 859 000”
Builder Sentiment Low
NAHB's October gauge hit a 14-year low with all components declining.
“Builder sentiment added to the gloom”
Economists Expect Sluggish Housing
Economists predict housing will weigh on growth through 2027 with low starts and high rates.
“Ben Ayers expects construction to stay sluggish into 2027”
Federal Reserve Rate Decision
Fed officials weigh next rate move amid persistent inflation concerns.
“Officials have said they are monitoring the inflationary effects of large-scale ai investment”
The short version
US pending home sales dropped 7.3% in September to a record low of 66.0, with mortgage rates climbing to 7.40%.
