September data shows housing market in a deep freeze
New data on the housing market's performance in September is bleak, with sales, construction and sentiment all falling more than expected.
TL;DR
- Pending home sales dropped 7.3% in September compared to August and 11.3% year-over-year.
- Average 30-year fixed mortgage rates rose from around 6.8% to 7.6% in September.
- Single-family housing starts fell 4.56% to 859,000 annualized, the lowest since September 2025.
- Building permits decreased by 4% for the month.
- Homebuilder sentiment reached its lowest level in 14 years in October.
- Sales dropped across all regions, with the South and West seeing the largest month-to-month declines.
- Challenges include high mortgage rates, elevated construction costs, and weaker consumer confidence.