Pending home sales plunged 7.3% in September to an index of 66, the lowest reading on record, according to the National Association of Realtors (NAR).
- The decline was far worse than the 0.2% increase economists expected. Pending sales were also down 11.3% from September 2025.
Why it matters: All four regions experienced declines, led by the West (-9.2%) and South (-8.2%). The Midwest fell 6.5%, while the Northeast declined 4.2%.
What’s driving the decline? NAR Chief Economist Lawrence Yun blamed rapidly rising mortgage rates, noting that higher borrowing costs are overwhelming the benefits of job growth and rising incomes.
The bottom line: Pending sales are a leading indicator of existing-home sales, suggesting another difficult month ahead for the housing market as affordability pressures continue to sideline buyers.