Pending Home Sales Stabilize in September

Pending home sales showed no change from the prior month in September and fell 0.9% year over year, the National Association of Realtors reported Wednesday.

NAR Chief Economist Lawrence Yun said contract signings matched the second-strongest pace of the year. “However, signings have yet to fully reach the level needed for a healthy market despite mortgage rates reaching a one-year low,” he added. “A record-high stock market and growing housing wealth in September were not enough to offset a likely softening job market.”

Sam Williamson, senior economist with First American, Santa Ana, Calif., added that while September’s pending home sales headline number appears flat relative to August, the underlying data tells a more nuanced story. “As a forward-looking indicator based on contract signings, the data suggests that lower mortgage rates, improved affordability and higher inventory are pulling more buyers back into the market, with signings matching their second-strongest pace of the year,” he said. “Still, many buyers remain cautious, despite mortgage rates hitting a one-year low.”

Williamson said that ultimately, he believes sales activity this year will be primarily driven by “life happens” moments such as job changes, marriages, births and other personal milestones—while affordability challenges and structural inventory shortages continue to weigh on demand. “Lower rates help, but they’re not a cure-all,” he said.