Pending home sales sink to 25-year low as buyers flee high mortgage rates

US pending home sales dropped to a record 25-year low in September, with contract signings falling by 7.3%. This decline occurred as buyers exited the housing market due to surging borrowing costs. The slowdown deepened specifically after the average 30-year mortgage rate surpassed 7%, leading to a significant decrease in home purchase contracts. These figures highlight a severe contraction in market activity driven by the impact of high interest rates on potential homebuyers.