Contract signings fell 7.3% last month compared to August, and were down plunged 11.3% compared to September 2025.
Pending home sales slipped in September on a monthly basis and fell year over year, as mortgage rates surging past 7% eroded prospective buyers' purchasing power.
Contract signings fell 7.3% compared to August, and were down plunged 11.3% compared to September 2025, according to the National Association of Realtors® Pending Home Sales report released Tuesday.
“Market conditions weakened in September due to fast-rising mortgage rates,” says NAR Chief Economist Lawrence Yun. “Although job growth and income gains can support home purchases, housing affordability is more affected by changes in mortgage rates.”
The fall season typically favors buyers, and this year was no exception, with home asking prices falling for an 11th straight month in September, price reductions edging up higher, and inventory climbing.
But with rates reaching their highest level in nearly three years, many buyers were reluctant to take advantage of the more favorable market conditions.
What this means for buyers and sellers
Realtor.com® senior economist Hannah Jones expects mortgage rates to stay elevated after recent inflation data remained hot, with both headline and core inflation picking up.
"As a result, markets are pricing in the possibility of another Fed rate hike before the end of the year," says Jones. "Against that backdrop, buyers will likely keep facing tough affordability conditions through year-end, especially as wage growth runs below inflation and further erodes real buying power."
Metros with smallest pending sales declines in September
- Nashville-Davidson-Murfreesboro-Franklin, TN (-2.0%)
- Hartford-West Hartford-East Hartford, CT (-2.1%)
- San Francisco-Oakland-Fremont, CA (-3.5%)
- San Jose-Sunnyvale-Santa Clara, CA (-4.6%)
- Buffalo-Cheektowaga, NY (-5.6%)
- Richmond, VA (-5.8%)
- Austin-Round Rock-San Marcos, TX (-5.9%)
- Pittsburgh, PA (-6.2%)
- Memphis, TN-MS-AR (-6.3%)
- San Antonio-New Braunfels, TX (-7.1%)
Developing story, check back for updates.