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Home Sales Fall to 25-Year Low as Buyers Flee High Rates
Confirmed
In Short: The decline in pending sales is attributed to sky-high mortgage rates and the usual fall slowdown, according to Zillow.
Pending home sales, a key indicator of housing market activity, fell to their lowest level in 25 years in September, according to a report from Redfin.
The Mortgage Bankers Association (MBA) noted that rates on a 30-year fixed-rate mortgage are currently at 2.90%, a slight decrease from the previous week, but still high compared to historical standards.
Despite the recent dip, the MBA predicts that rates on a 30-year mortgage will rise to 4.9% in 2023, which could further deter potential buyers.
Redfin's data shows that pending sales fell simultaneously in all 50 of the most populous US metropolitan areas for the first time since September 2023, a period marked by mortgage rates exceeding 7%.
The decline in pending sales is attributed to sky-high mortgage rates and the usual fall slowdown, according to Zillow.
First American Senior Economist Sam Williamson noted that strong job growth and firmer inflation have tilted the Federal Reserve toward a potential September rate hike, pushing Treasury yields and mortgage rates to one-year highs.
The average 30-year fixed mortgage rate rose 5 basis points to 6.76% during the week ending Sept. 10, according to Freddie Mac.
While mortgage rates have spiked in early 2021, data suggests a downward trend into the summer months, with rates hovering around 3% since April.
Despite the current dip in rates, buyers are still hesitant due to the fear of future rate increases.
Experts advise potential buyers to get prequalified and compare rates on online loan marketplaces to lock in the best deals.
Listing homes at slightly below nearby comparable prices and ensuring meticulous preparation can help prevent future price drops and negative perceptions.
The rising rates come as property market activity shows signs of weakening, with inflation currently running at 3.1%.
What this adds
The impact of rising rates on housing affordability and market activity remains a significant concern for both buyers and sellers.
The bond market's role in dictating mortgage and loan rates underscores the broader economic challenges faced by consumers and businesses.
What's confirmed
- Pending home sales, a key indicator of housing market activity, fell to their lowest level in 25 years in September, according to a report from Redfin.
- The Mortgage Bankers Association (MBA) noted that rates on a 30-year fixed-rate mortgage are currently at 2.90%, a slight decrease from the previous week, but still high compared to historical standards.
- Despite the recent dip, the MBA predicts that rates on a 30-year mortgage will rise to 4.9% in 2023, which could further deter potential buyers.
- Redfin's data shows that pending sales fell simultaneously in all 50 of the most populous US metropolitan areas for the first time since September 2023, a period marked by mortgage rates exceeding 7%.
- The decline in pending sales is attributed to sky-high mortgage rates and the usual fall slowdown, according to Zillow.
- First American Senior Economist Sam Williamson noted that strong job growth and firmer inflation have tilted the Federal Reserve toward a potential September rate hike, pushing Treasury yields and mortgage rates to one-year highs.
- The average 30-year fixed mortgage rate rose 5 basis points to 6.76% during the week ending Sept. 10, according to Freddie Mac.
- While mortgage rates have spiked in early 2021, data suggests a downward trend into the summer months, with rates hovering around 3% since April.
- Despite the current dip in rates, buyers are still hesitant due to the fear of future rate increases.
- Experts advise potential buyers to get prequalified and compare rates on online loan marketplaces to lock in the best deals.
- Listing homes at slightly below nearby comparable prices and ensuring meticulous preparation can help prevent future price drops and negative perceptions.
- The rising rates come as property market activity shows signs of weakening, with inflation currently running at 3.1%.
What's still developing
- You can get prequalified and compare rates on Credible's online loan marketplace, all without impacting your credit score.
- Most of the deals that closed last month went under contract in July or August, when rates were marching upward and widespread economic uncertainty was pushing many would-be buyers to the sidelines.
- "Now, the calculus has changed. If you're not pricing slightly below nearby comps and prepping your home meticulously, your home may very well linger on the market, leading to price cuts or delistings. If you're selling a home, be aggressive and list it potentially 5-10% below what you think you should list it for. Ensure there's absolutely nothing a buyer would balk at–the landscaping should be perfect and the home should be staged. That can help prevent future potential price drops, and the negative perception of accruing days on market."
- WASHINGTON, D.C. (August 27, 2026) – Homebuyer affordability improved in July, with the national median payment applied for by purchase applicants decreasing to $2,175 from $2,191 in June.
- The 25th percentile mortgage application payment to median asking rent ratio increased to 0.99 in June (0.94 in March).
- Barclays removed its 4.75% two-year fixed rate and 4.93% five-year deal for new customers this week, leaving its best rates above the 5% threshold, according to The Times.
- Michigan’s GOP Senate candidate Mike Rogers this week became the latest example when he called for an end to the “tariff war” with Canada — a notable shift after he spent weeks defending the president’s decision.
- Scott, chairman of the Senate Banking Committee and one of the bill’s lead sponsors, joined FOX Business’ Taylor Riggs on " Mornings with FOX Business " to discuss the CLARITY Act and a key procedural vote that would allow negotiations to continue.
- "Rules of the road matter." Scott said some Democrats have already made clear they will not support the legislation, framing the debate as one that could determine whether the U.S.
- It also makes you a more serious buyer in the eyes of sellers, since it means a lender has already reviewed your finances and issued preliminary approval for a home loan.
- You might start with a prequalification in the early planning stages of looking for a home.
- The bond market can dictate how much ordinary people have to pay on their mortgages and car loans, as well as how much they earn from their savings accounts and 401(k) plans.