US housing market activity hits lowest level since 2001
Pending home sales in the US declined 7.3% in September, marking the lowest reading for the series since its launch in 2001.
The US housing market is experiencing a significant slowdown, with signed contract activity on existing homes falling to a two-decade low in September. Data from the National Association of Realtors indicates an 11.3% decline compared to the previous year, with the South and West regions experiencing the most pronounced cooling.
Industry analysts attribute the slump primarily to surging mortgage rates, which climbed toward 7.6% during September. National Association of Realtors chief economist Lawrence Yun noted that while income growth remains positive, the rapid rise in borrowing costs has severely impacted affordability, effectively sidelining many potential buyers.
Supply-side indicators echo this downward trend. The US Census Bureau reported a 5.2% decline in housing starts from August to September, while homebuilder sentiment has reached its lowest point in 14 years. Elevated construction costs and financing hurdles continue to dampen outlooks for the sector, pointing to continued market stagnation in the near term.