# Housing market freezes as mortgage rates surge

> Pending home sales plunged in September as mortgage rates climbed, with homebuilder sentiment hitting a 14-year low.
- Title: Housing market freezes as mortgage rates surge · CNBC
- Summary: Pending home sales plunged in September as mortgage rates climbed, with homebuilder sentiment hitting a 14-year low. Pending home sales dropped seven point…
- Keywords: housing market, pending home sales, mortgage rates, homebuilder sentiment, housing starts, national association of realtors, national association of home builders, business, finance, Housing, market, freezes
- Source: CNBC — https://cnbc.com/2026/10/20/september-data-shows-housing-market-in-a-deep-freeze.html
- Author: Diana Olick
- Published: 2026-10-20T14:00:03+00:00
- Read time: 1 min
- Topics: housing market, pending home sales, mortgage rates, homebuilder sentiment, housing starts, national association of realtors, national association of home builders, business, finance
## Pending sales plunge in September
Pending home sales dropped seven point three percent from August and fell eleven point three percent year-over-year, according to the National Association of Realtors.
## Mortgage rates climbed sharply
The average rate on the thirty-year fixed mortgage started September around six point eight percent and hit seven point six percent by month end, according to Mortgage News Daily.
## Regional sales fell across nation
The South saw month-to-month sales drop eight point two percent and the West fell nine point two percent. The South is usually the most active market and the West is the most expensive.
## Housing starts hit lowest since 2025
Single-family housing starts fell four point five six percent to eight hundred fifty-nine thousand annualized, the lowest level since September twenty twenty-five, according to the U.S. Census.
## Homebuilder sentiment hits 14-year low
An October read on homebuilder sentiment came in at the lowest level in fourteen years, with current sales, future expectations and buyer traffic all falling, according to the National Association of Home Builders.

> Housing remains squeezed by supply-side constraints and significant affordability challenges.
## Key takeaway

Pending home sales dropped seven point three percent in September as mortgage rates rose sharply, signalling a severe slowdown in the housing market.