Mortgage Shock Sends US Pending Home Sales to Near 12-Year Low
US pending home sales have dropped to near a 12-year low due to high mortgage rates. The surge in rates has led to a significant decrease in home sales, with many buyers priced out of the market. This decline is a continuation of a trend that has seen residential lending fall for 11 of 12 quarters after reaching a peak during the refinance boom post-COVID-19 lockdowns.
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- ✓ US pending home sales have dropped to near a 12-year low
- ✓ Mortgage rates have risen significantly from the lows seen during the COVID-19 pandemic
- ✓ Residential lending has fallen for 11 of 12 quarters after reaching a peak during the refinance boom post-COVID-19 lockdowns
- ✓ Existing-home sales increased 1.5% in September
What changed
Pending home sales have dropped to near a 12-year low, with mortgage rates near 7% contributing to the decline.
Live updates
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US Pending Home Sales Hit Near 12-Year Low Amid Mortgage Shock
US pending home sales have dropped to near a 12-year low due to high mortgage rates. The surge in rates has led to a significant decrease in home sales, with many buyers priced out of the market. This decline is a continuation of a trend that has seen residential lending fall for 11 of 12 quarters after reaching a peak during the refinance boom post-COVID-19 lockdowns.
Why it matters
The US housing market is experiencing a slowdown due to high mortgage rates, which have risen significantly from the lows seen during the COVID-19 pandemic. The Federal Reserve's actions to normalize interest rates have contributed to this increase. As a result, home sales have been impacted, with many buyers finding it difficult to afford homes at current prices.
What is confirmed
- US pending home sales have dropped to near a 12-year low
- Mortgage rates have risen significantly from the lows seen during the COVID-19 pandemic
- Residential lending has fallen for 11 of 12 quarters after reaching a peak during the refinance boom post-COVID-19 lockdowns
- Existing-home sales increased 1.5% in September
Still unconfirmed
- Zillow predicts major mortgage rate and housing market change
What to watch next
- Upcoming Federal Reserve meeting to discuss interest rates
- Release of October US jobs report and its impact on mortgage rates
- Housing market trends in major US cities, including Chicago, Maryland, and Rhode Island
confidence 85%Sources used for this update (26)
- www.bankrate.com — Current Mortgage Rates: Compare Today's Rates | Bankrate
- www.mortgagecalculator.org — Mortgage Calculator
- www.bankrate.com — Mortgage calculator - Bankrate
- www.freedommortgage.com — Freedom Mortgage | A Top Mortgage Lender and Servicer
- TheStreet — Zillow predicts major mortgage rate, housing market change
- Bloomberg.com — Mortgage Shock Sends US Pending Home Sales to Near 12-Year Low
- Yahoo Finance — U.S. Pending Home Sales Sink Near 12-Year Low
- FOX 9 Minneapolis-St. Paul — Mortgage rates near 7%, what should home buyers do?
- Patch — Chicago Housing Market Sees A Surprising Shift In Buyer Behavior
- The Independent — Home sales under contract plummet to 12-year low in US
- Patch — Maryland Housing Market Sees Surprising Shift In Buyer Behavior
- Yahoo Finance — Higher mortgage rates keep home sales stuck around year-to-date lows
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