Indicators

US Pending Home Sales Fall by Most in Two Years as Rates Rise

  • Contract signings dropped more than 10% in September
  • Excluding early months of pandemic, index is lowest since 2010

A home under construction in Sumter, South Carolina.

Photographer: Micah Green/Bloomberg
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US pending home sales sank last month by the most since the immediate aftermath of the pandemic, illustrating a swift and steep downturn for a housing market beset by soaring borrowing costs.

The National Association of Realtors index of contract signings to purchase previously owned homes decreased 10.2% in September, the sharpest fall since April 2020, according to data released Friday. The drop was worse than the most downbeat projection in a Bloomberg survey of economists.