Contracts Cool

The National Association of Realtors said September pending U.S. home contracts fell 7.3% monthly and 11.3% annually, with all four regions declining [1]. Chief Economist Lawrence Yun attributed the weakness to rapidly rising mortgage rates [1].

Borrowing Costs

Freddie Mac's survey average 30-year fixed mortgage rate climbed from 6.71% on Sept. 3 to 7.40% on Oct. 15 [1]. NerdWallet reported rates starting the week lower as Treasury yields fell [2].

Pipeline Signal

Pending sales count signed contracts, typically preceding completed purchases by one or two months; completed existing-home sales rose 1.5% in September [1]. Builder confidence slipped to 29 in October, its lowest since June 2012 [1].