US pending home sales tumble to record low in September
SPY•The pending home sales index fell 7.3% to 66.0 in September, its lowest level since the series began in 2001, versus economists’ forecast for a 0.5% decline. Sales contracts were down 11.3% year over year as mortgage rates rose.
1. Sales hit a record low
Contracts to purchase previously owned U.S. homes plunged in September, with the pending home sales index falling 7.3% to 66.0, the lowest reading since the series began in 2001. Economists had forecast a 0.5% decline. Contracts fell in all four regions and were down 11.3% from a year earlier.
2. Mortgage rates rise
The 30-year fixed mortgage rate averaged 7.40% last week, its highest level in nearly three years, according to Freddie Mac data. NAR chief economist Lawrence Yun said market conditions weakened in September due to fast-rising mortgage rates.
