US pending home sales dropped 7.3% in September 2026 from the previous month, falling to the lowest level on record and sharply missing market expectations of a 0.5% decline, according to data from the National Association of Realtors (NAR). The weak figures coincided with a surge in mortgage rates, as elevated inflation expectations, widening federal deficits, and a still-resilient economy pushed long-term Treasury yields to their highest levels in over a decade.
Contract signings declined across all major regions: the West (-9.2%), the South (-8.2%), the Midwest (-6.5%), and the Northeast (-4.2%).
“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.”