US Pending Home Sales Near 12-Year Low as Rates Top 7%
Pending home sales have collapsed to levels last seen in 2014, with mortgage rates above 7% squeezing buyers out of the market.
Pending home sales in the United States have fallen to their lowest point in roughly a decade, a stretch not seen since 2014 outside of the brief pandemic-driven freeze in early 2020, as mortgage rates surging past 7% continue to sideline prospective buyers across the country.
The affordability squeeze is pushing deal activity sharply lower even as the total inventory of homes available for sale climbed to its highest level since March 2020, suggesting sellers are struggling to find qualified buyers willing or able to commit at current financing costs.
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Contract cancellations are also rising. Some 14.5% of homebuying agreements fell apart in September, a sign that even buyers who enter contracts are increasingly backing out — likely due to rate shock, failed financing, or deteriorating confidence in the broader housing market.
The simultaneous rise in inventory and collapse in pending sales points to a market in a fragile holding pattern. Higher supply would ordinarily signal relief for buyers, but with borrowing costs at multi-decade highs, demand has weakened enough that the increased inventory has not translated into closed transactions.
Analysts watching the sector will be focused on whether any near-term pullback in mortgage rates can restore enough buyer confidence to lift contract activity before year-end. Continue reading at Economic News, Trends, Analysis.
