Pending U.S. home sales fell 7.3% in September 2026 to a record low as mortgage rates rose sharply and contract signings declined in every major region, the National Association of Realtors reported Oct. 20.
The Pending Home Sales Index fell to 66.0, its lowest reading since the series began in 2001. It was 11.3% below its level a year earlier. The index measures contracts signed for existing homes, so its fall points to weakness in future completed sales.
Borrowing costs rose during the month: according to CNBC, the average rate on a 30-year fixed mortgage climbed from about 6.8% at the start of September to 7.6% by the end. The West had the largest monthly fall in pending sales, at 9.2%, followed by the South at 8.2%, the Midwest at 6.5% and the Northeast at 4.2%. NAR Chief Economist Lawrence Yun said changes in mortgage rates can affect affordability more than gains in jobs and income.
He also noted that price pressures linked to energy costs remain uncertain. With buyers facing higher borrowing costs, many may wait for rates to fall before agreeing to buy.