U.S. Housing Market Slumps

Pending sales of existing homes dropped 7.3% in September from August, hitting the lowest level since tracking began in 2001. Housing starts also fell 5.2% to an annual pace of about 1.22 million homes. Mortgage rates rose above 7% during the month, reducing how much buyers could borrow and adding pressure before the Federal Reserve’s October meeting. National Association of RealtorsNational Association of RealtorsAmerican real estate agent organization based in Chicago chief economist Lawrence YunLawrence YunAmerican economist said fast-rising rates hurt affordability more than job and income gains could offset. Builders have cut prices or offered incentives as demand weakens. One economist cited by CNBC expected construction to stay weak into 2027.