Pending Home Sales Plunge to Record Low in September as 30-Year Mortgage Rate Tops 7%

Pending home sales fell in September to their lowest level since the National Association of Realtors began tracking the data in 2001, as buyers retreated from the market after the average 30-year mortgage rate climbed above 7%. Contract signings dropped 7.3% from August and 11.3% from a year earlier, NAR reported Tuesday. The trade group attributed the decline to rising borrowing costs, which surged alongside oil prices and expectations of Federal Reserve rate hikes. The weakness extends across the housing sector. Home builders reported buyer traffic at a 14-year low on Monday, and roughly 44% of listed homes had seen price cuts as of Oct. 18, according to ParclHQ. The median list price in early October was about $415,000, Realtor.com data showed. Pending sales serve as an early indicator of how the housing market will perform in coming months.