Mortgage rates at 3-year high push pending sales down
A buyer putting 20% down on that home now faces a monthly payment of $1,922, 6.7% more than twelve months earlier, before taxes and insurance.
At median household income, that payment consumes 34.3% of gross earnings, up from 33.7% the prior year.
Supply is no longer the constraint. Total for-sale inventory was 2.5% higher than September 2025, extending annual gains to 34 consecutive months, though new listings remained 11.9% below the pre-pandemic baseline.
Homes sat on the market a median of 29 days before going under contract, two days longer than a year earlier, and 27.4% of listings carried price reductions, up from 26.2% twelve months before.
A new analysis from Zillow found that newly built homes are selling for a lower median price per square foot than existing homes nationwide, driven largely by increased inventory and builder incentives in key Sun Belt markets. https://t.co/p9BiScqJaw
— Mortgage Professional America Magazine (@MPAMagazineUS) September 30, 2026
Rental market steps in as buyers retreat
The clearest evidence that sidelined purchase demand hasn’t evaporated – only rerouted – is rent. The typical US rent rose 2.7% year over year in September to $1,932, the largest annual gain since April 2025.
