The US housing market weakened sharply in September as rising mortgage rates discouraged buyers and slowed construction, according to newly released industry and government data.
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Pending sales of existing homes fell 7.3% from August and 11.3% year-over-year, the National Association of Realtors reported. The average 30-year fixed mortgage rate climbed from around 6.8% at the start of September to 7.6% by month-end. NAR chief economist Lawrence Yun said mortgage costs have a greater influence on affordability than employment and income gains.
The South and West recorded the steepest monthly declines in pending sales, at 8.2% and 9.2%, respectively.
Single-family housing starts dropped 4.56% to an annualized 859,000, their lowest level since September 2025. Building permits fell 4%, according to the Census Bureau.
Meanwhile, homebuilder sentiment reached a 14-year low in October. Economists expect elevated borrowing and construction costs to restrain building activity into 2027, weighing on economic growth.
Related Tweet:
September data shows housing market in a deep freeze https://t.co/qJlVLzA4LQ
— CNBC (@CNBC) October 20, 2026
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