September Data Shows Housing Market in a Deep Freeze
Wanjiru Waweru, Jadetimes Contributor
W. Waweru is a Jadetimes News Reporter Covering America and Business News
Fast-rising mortgage rates in September took a heavy toll on the housing market, according to recent housing market data released on October 20. Pending home sales, a measure of signed contracts on existing homes, fell 7.3% from August and 11.3% year-over-year, according to the National Association of Realtors.
The count reflects buyers out shopping in September, when the average rate on the 30-year fixed mortgage rose sharply. It began the month around 6.8% and hit 7.6% by month's end, according to Mortgage News Daily.
Lawrence Yun, NAR’s Chief Economist, stated in a release.
“Although job growth and increase gains can support home purchases, housing affordability is more affected by changes in mortgage rates,” said Yun.
Regionally, sales decreased around the United States; however, the largest month-to-month decreases were in the South (-8.2%) and West (-9.2%). The South is usually the most active housing market, and the West is the most expensive.
Home construction took a hit in September. Both single-family housing starts and building permits dropped more sharply than analysts had predicted. Starts decreased to 4.56% to 859,000 annualized, according to the U.S. Census. That is the lowest level since September 2025. Building permits, which are a measure of future construction, decreased 4% for the month.
Ben Ayers, senior economist at Nationwide Financial, noted this to investors.
“We expect home construction activity to remain moribund into 2027,” said Ayers. “Many builders are still trying to unload current projects with widespread use of price cuts and incentives cutting into profit margins. Housing starts, especially for single-family homes, could be low for much of the next year as the market adjusts to a higher rate environment – adding a modest drag to economic growth from reduced residential construction.”
About Wanjiru Waweru
Wanjiru Waweru is a Jadetimes Contributor. You can email Wanjiru at sellmypaperwork@gmail.com.
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