Mortgage rates have climbed sharply, making home purchases more expensive for American households
Rising mortgage rates pushed US pending home sales to the lowest level since 2001 in September, according to the National Association of Realtors (NAR).
NAR reported a 7.3% monthly drop in its pending home sales index to 66.0. The decline far exceeded economists’ expectations of a 0.5% fall.
Sales contracts also dropped 11.3% from a year earlier in all four US regions.
Mortgage rates have climbed sharply, making home purchases more expensive for American households. Freddie Mac said the average rate on a 30-year fixed mortgage reached 7.40% last week, its highest level in nearly three years.
Rising energy prices and renewed inflation concerns linked to the US-Israeli war with Iran have pushed up Treasury yields, adding pressure on mortgage rates and further dampening housing demand.