Pending Home Sales Plunge 7.3% in Troubling Sign for Fall Housing Market

Pending home sales slipped in September on a monthly basis and fell year over year, as mortgage rates surging past 7% eroded prospective buyers' purchasing power.Contract signings fell 7.3% compared to August, and were down plunged 11.3% compared to September 2025, according to the National Association of Realtors® Pending Home Sales report released Tuesday.“Market conditions weakened in September due to fast-rising mortgage rates,” says NAR Chief Economist Lawrence Yun. “Although job growth and income gains can support home purchases, housing affordability is more affected by changes in mortgage rates.”The fall season typically favors buyers, and this year was no exception, with home asking prices falling for an 11th straight month in September, price reductions edging up higher, and inventory climbing. But with rates reaching their highest level in nearly three years, many buyers were reluctant to take advantage of the more favorable market conditions.What this means for buyers and sellersRealtor.com® senior economist Hannah Jones expects mortgage rates to stay elevated after recent inflation data remained hot, with both headline and core inflation picking up. "As a result, marke...