Home Sales Under Contract Hit 12-Year Low as Mortgage Rates Surge

Mortgage rates hit 7.4% as home sales under contract fall to a 12-year low, impacting buyers and sellers nationwide.

October 13, 2026 One Min Read

POLICY WIRE — Washington, D.C. — Home sales under contract have reached a 12-year low in the U.S., according to new data from Redfin, signaling a sharp decline in housing activity.

The number of homes entering a pending sale dropped 4 percent in September, marking the largest monthly decline in over three years. This follows a steady rise in mortgage rates, which exceeded 7% by the end of the month, according to the housing platform.

📖 THE POLICY DIGEST MAGAZINE: OCTOBER 2026 EDITION NOW LIVE

Exclusive Battle Damage Assessment by Sarah Adams, US-Iran Diplomatic Talks & Transnational Investigations

👉 READ BY CLICKING HERE

Pending sales fell across all 50 states for the first time in three years, with mortgage rates climbing to 7.4%—the highest since November 2023. Experts warn that rising borrowing costs are reshaping the real estate landscape, offering more leverage to buyers but challenging sellers.

Reporting by Policy-Wire (PW)

Author

Editorial Desk

Policy Wire is your go-to editorial hub for insightful perspectives and informed analysis on pressing policy issues, both regionally and globally. Over the years, Policy Wire has collaborated with leading international news agencies—including AFP, AP, Reuters, and others—to provide fact-based reporting and nuanced commentary. With a commitment to clarity and credibility, we aim to bridge the gap between complex policy debates and public understanding, ensuring that our readers stay informed on the issues shaping the world today.