Housing market just flashed a warning sign.
Pending home sales dropped 12.7% year-over-year in September. That's a massive acceleration from the 2.9% decline the month before. Worst reading in three years.
This isn't just a data point. It's a story about what happens when mortgage rates stay elevated and buyers sit on their hands. The transaction freeze continues.
People forget: housing isn't just shelter. It's the largest asset class for most Americans. When it slows this hard, it ripples through furniture, appliances, construction jobs, local tax revenue.
The optimists will say rates will come down and unlock demand. Maybe. But at what cost to the rest of the economy? And how long will sellers hold out hoping for 2021 prices that aren't coming back?
Markets can stay frozen longer than you think. Especially when both sides are waiting for the other to blink first.
Pending home sales dropped 12.7% year-over-year in September. That's a massive acceleration from the 2.9% decline the month before. Worst reading in three years.
This isn't just a data point. It's a story about what happens when mortgage rates stay elevated and buyers sit on their hands. The transaction freeze continues.
People forget: housing isn't just shelter. It's the largest asset class for most Americans. When it slows this hard, it ripples through furniture, appliances, construction jobs, local tax revenue.
The optimists will say rates will come down and unlock demand. Maybe. But at what cost to the rest of the economy? And how long will sellers hold out hoping for 2021 prices that aren't coming back?
Markets can stay frozen longer than you think. Especially when both sides are waiting for the other to blink first.