According to the National Association of REALTORS (NAR) Pending Home Sales Report, pending home sales in September decreased by 7.3% month-over-month and 11.3% year-over-year. All four major U.S. regions declined, with the West seeing the largest drop. The South followed close behind, followed by the Midwest and Northeast.
“Market conditions weakened in September due to fast-rising mortgage rates,” said NAR Chief Economist Dr. Lawrence Yun. “Although job growth and income gains can support home purchases, housing affordability is more affected by changes in mortgage rates. Given that mortgage rates have already risen much more than the Federal Reserve’s short-term interest rate hikes, mortgage rates could be topping out. Despite the difficulty of obtaining a mortgage, the limited number of distressed properties is ensuring steady home prices. Buyers and sellers may simply be holding back until mortgage rates move favorably.”
