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Americans are struggling to buy homes amid rising costs
ABC News - Breaking News, Latest News and Videos • • business
Key Points:
- Pending home sales in the U.S. dropped 7.3% in September 2026, marking the lowest level since the Pending Home Sales Index began in 2001, reflecting a significant weakening in the housing market.
- Rising mortgage rates, reaching an average 30-year fixed rate of 7.43%, have priced out millions of potential homebuyers, with nearly 6 million fewer Americans able to afford median-priced homes compared to rates at 6%.
- The typical monthly mortgage payment on a median-priced home now consumes 40% of average after-tax income, up from 35% at the start of the year, severely impacting housing affordability.
- Regional declines in pending home sales were most pronounced in the West, followed by the South, Midwest, and Northeast, with higher mortgage and energy costs contributing to market uncertainty.
- New home construction is also slowing, with housing starts falling 5.2% from August and 7.4% year-over-year, indicating reduced builder activity amid the challenging market conditions.
