US pending home sales sank by 7.3% from the previous month in September of 2026 to the lowest level on record, contrasting with market expectations of a 0.5% decrease, according to data compiled by the National Association of Realtors. The pessimistic data was aligned with soaring mortgage rates as the high inflation outlook, widening federal deficits, and resilient economy lifted long-term Treasury yields to decade-highs. Pending sales fell in all areas of the US, including the West (-9.2%), South (-8.2%), Midwest (-6.5%), and the Northeast (-4.2%). “Market conditions weakened in September due to fast-rising mortgage rates,” said NAR Chief Economist Dr. Lawrence Yun. “Although job growth and income gains can support home purchases, housing affordability is more affected by changes in mortgage rates.”