Americans are struggling to buy homes amid rising costs
American prospective homebuyers are facing intense financial strain as rising costs and high borrowing expenses severely depress the housing market. Pending home sales tumbled to a record or 25-year low, accompanied by a steep 7.3 percent drop as mortgage rates hit 7.6 percent. September marked the worst month on record for pending sales since tracking began, with prospective buyers fleeing the market. Concurrently, homebuilder sentiment fell to a 14-year low, and consumers are canceling active home sales contracts at near-record rates amid mounting affordability pressures.
Listen to Live Briefing
Real-time synthesized voice briefing · Live Feeds Desk
- ✓ Pending home sales dropped by 7.3 percent as mortgage rates hit 7.6 percent.
- ✓ September was the worst month for pending home sales since tracking began, reaching a record or 25-year low.
- ✓ Homebuilder sentiment reached a 14-year low.
- ✓ Homebuyers are canceling sales at near-record rates.
What changed
Pending home sales fell by 7.3 percent to a multi-decade low as mortgage rates reached 7.6 percent.
Live updates
-
US Pending Home Sales Plunge Amid High Mortgage Rates
American prospective homebuyers are facing intense financial strain as rising costs and high borrowing expenses severely depress the housing market. Pending home sales tumbled to a record or 25-year low, accompanied by a steep 7.3 percent drop as mortgage rates hit 7.6 percent. September marked the worst month on record for pending sales since tracking began, with prospective buyers fleeing the market. Concurrently, homebuilder sentiment fell to a 14-year low, and consumers are canceling active home sales contracts at near-record rates amid mounting affordability pressures.
Why it matters
The sharp downturn in housing market activity signals deep economic strain for American consumers navigating high interest rates. These conditions reflect broader affordability challenges as the Federal Reserve weighs additional interest rate hikes. The decline in new home purchases and tumbling pending sales highlight how elevated borrowing costs are freezing out buyers and weakening homebuilder confidence.
What is confirmed
- Pending home sales dropped by 7.3 percent as mortgage rates hit 7.6 percent.
- September was the worst month for pending home sales since tracking began, reaching a record or 25-year low.
- Homebuilder sentiment reached a 14-year low.
- Homebuyers are canceling sales at near-record rates.
What to watch next
- Decisions by the Federal Reserve regarding potential interest rate hikes
- Upcoming housing market data releases to see if sales stabilize or drop further
confidence 100%Sources used for this update (20)
- www.nytimes.com — The New York Times - Breaking News, US News, World News and Videos
- www.cnn.com — Breaking News, Latest News and Videos | CNN
- help.naver.com — Futures Flat As Oil Rebounds After Trump's "Energy Ceasefire" Unravels, Memory Stocks Slide | ZeroHedge
- theconversation.com — What we talk about when we talk about US strategic ‘credibility’ – from Vietnam to Iran
- The Washington Post — Why buying a house feels so painful now — and your parents may not understand
- The Economist — Why Americans have stopped buying new homes
- Yahoo Finance — Homebuyers are canceling sales at near-record rates
- Yahoo Finance — US pending home sales tumble to record low in September
- CNBC — Housing is flashing warning signs just as the Fed weighs more interest rate hikes
- Axios — Homebuilder sentiment is at a 14-year low
- ABC News - Breaking News, Latest News and Videos — Americans are struggling to buy homes amid rising costs
- timesofindia.indiatimes.com — US Iran War Live Updates: Hegseth says US troops in Israel ready to ensure Iran 'never has a nuclear weapon'
Community Sentiment: How do you assess this situation?
Voice your perspective · Real-time aggregated sentiment from the Live Feeds community