Pending home sales across the United States slipped 7.3% from August to September, reaching the lowest level recorded since the National Association of Realtors began tracking the index in 2001. The year‑over‑year decline was more than 11% nationwide, with the western region seeing a 15% drop compared with last September.
Mortgage rates drive the slowdown
“Market conditions weakened in September due to fast‑rising mortgage rates,” said NAR Chief Economist Dr. Lawrence Yun in a statement. He added that while job growth and income gains can support home purchases, housing affordability is more directly affected by changes in mortgage rates.
Freddie Mac reported that the average 30‑year fixed‑rate mortgage was 7.40% for the week of Oct. 15. Yun noted that mortgage rates have risen more than the Federal Reserve’s short‑term interest‑rate hikes and could be nearing a peak, though higher energy prices and lingering inflationary pressure add uncertainty.
Phoenix market holds its ground
Despite the national slowdown, local real‑estate agent Trevor Halpern said the greater Phoenix area has not seen a price decline. “It is really interesting to see where prices are right now and how prices have responded – which is a flat line,” Halpern told Arizona’s Family. “We have seen that our median in our marketplace is $450,000. A month ago, it was about $450,000. Last year, it was about $450,000. So our prices have yet to be affected.”
Halpern cautioned buyers who are waiting for a dramatic price crash or a significant drop in interest rates, saying it is “probably not going to happen.” For sellers, he warned that offers may come with requests for closing‑cost assistance so buyers can buy down their interest rates.
What this means for Arizona families
For homeowners and prospective buyers in Arizona, the data suggests that while the broader market faces headwinds, local home values remain resilient. Families looking to purchase can still find median prices stable, though they should be prepared for higher borrowing costs.
Industry observers note that the stability in Phoenix reflects a strong regional economy and continued demand for housing, even as mortgage rates climb. As the market adjusts, buyers who act now may avoid future competition when rates potentially ease.
Looking ahead
Economists will watch upcoming Federal Reserve policy meetings and energy‑price trends for clues about whether mortgage rates will indeed top out or begin to recede. In the meantime, Arizona’s real‑estate market appears poised to weather the national dip, offering a measure of confidence for local families seeking to buy or sell homes.
Original reporting: azfamily KTVK/KPHO Phoenix (news) — read the source article.
