Pending Home Sales Near 12-Year Low as Rates Top 7%
U.S. pending home sales have collapsed to levels unseen since 2014, with mortgage rates above 7% freezing out buyers.
U.S. pending home sales have fallen to their lowest point in roughly a decade outside of the brief pandemic-era freeze in 2020, as mortgage rates climbing above 7% continue to sideline prospective buyers across the country.
The sharp decline in contract signings reflects mounting affordability pressures that have stalled what would normally be active purchasing activity. Elevated borrowing costs have effectively priced out a broad segment of the market, contributing to a surge in deal cancellations — 14.5% of homebuying transactions fell through in September alone.
Read more Fed Releases 2025 Survey of Consumer Finances Results →
Despite weakened demand, inventory is beginning to recover. The total supply of homes available for sale rose to its highest level since March 2020, a development that could offer some relief to buyers still in the market but has so far done little to revive overall contract activity.
The confluence of high rates and rising cancellations signals continued stress in the housing market. Analysts note that sellers and buyers remain at an impasse, with many would-be purchasers opting to wait for rate relief that has yet to materialize in a meaningful way.
Continue reading at All Financial Services & Investing.
