Mortgage rates near 7.3% stall U.S. home sales at year-to-date lows

Key points

• Existing-home sales hit a seasonally adjusted annual rate of 3.99 million in September, the slowest since August 2026.
• The 30-year fixed mortgage rate reached 7.28%, the highest level in three years, limiting buyer affordability.
• Housing inventory rose 1.9% to 1.60 million units, representing a 4.8-month supply, the highest since the pandemic.
• Pending home sales fell 4% from August to September, with 14.5% of contracts canceled nationwide.
• Median existing-home prices rose 1.3% year-over-year to $417,500, marking the 39th consecutive month of gains.

Background

This follows a trend of slowing sales since August 2026, when inventory peaked at a 4.9-month supply. Mortgage rates broke above 7% in September 2025, and homeowners have avoided tapping into record $11.5 trillion in home equity due to higher borrowing costs.

How outlets are covering it

Redfin emphasizes the surge in contract cancellations, with 14.5% of deals canceled nationwide and 11.4% in the Boston metro area. NAR highlights the slight month-over-month sales increase but notes the year-over-year decline. Both agree that rising rates and high prices are key headwinds, while Redfin notes buyers have more negotiating power due to higher inventory.

Why it matters

Stalled home sales and rising cancellations signal a fragile housing market, which could impact broader economic growth and consumer confidence. Higher inventory may lead to price declines, but affordability remains a major barrier for buyers.

What to watch

Watch for further changes in mortgage rates and Federal Reserve policy, which could influence buyer demand and home prices in the coming months.