# 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%.
- Title: US Home Sales Drop to Record Low as Mortgage Rates Rise
- Summary: 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…
- Keywords: us pending home sales, mortgage rates, national association of realtors, lawrence yun, freddie mac, 30 year fixed mortgage rate, housing starts, builder sentiment, finance, markets, Home, Sales
- Source: BigGo Finance — https://finance.biggo.com/news/c69bab6d-ec48-454d-b308-f62323b68b87
- Author: BigGo Finance
- Published: 2026-10-20T14:35:11+00:00
- Read time: 1 min
- Topics: us pending home sales, mortgage rates, national association of realtors, lawrence yun, freddie mac, 30 year fixed mortgage rate, housing starts, builder sentiment, finance, markets
## 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
## Key takeaway

US pending home sales dropped 7.3% in September to a record low of 66.0, with mortgage rates climbing to 7.40%.