Story perspectives

Mortgage rates hit 7.4% as pending sales plunge 4%

By Drooid · Oct 13, 2026, 3:48 PM UTC · How we work

Summary

Story summary

Pending home sales fell 4% in September, the biggest monthly drop in three years, Redfin said.
Mortgage rates climbed to 7.4% by early October, the highest since November 2023, Freddie Mac reports.
Buyers cancelled 14.5% of contracts in September, the highest share since the pandemic began.
Sellers reduced asking prices for 19.8% of listings in September, nearly one-fifth of homes.

History

Historical Context

The 2008 U.S. subprime mortgage crisis, which peaked in September 2008, triggered a nationwide collapse of home values. The Federal Reserve cut its policy rate to 0.25% in December 2008, while Freddie Mac reported a 30% plunge in originations and Lehman Brothers declared bankruptcy. Similarly, today’s pending sales fell 4% and mortgage rates rose to 7.4%, echoing the sharp buyer pullback that saw 14.5% contract cancellations during the 2008 downturn. Analysts warn that repeated rate spikes could revive foreclosures, prompting the Treasury and Fannie Mae to consider new liquidity programs to stabilize the market.

1 of 2

Story summary

Pending home sales fell 4% in September, the biggest monthly drop in three years, Redfin said.
Mortgage rates climbed to 7.4% by early October, the highest since November 2023, Freddie Mac reports.
Buyers cancelled 14.5% of contracts in September, the highest share since the pandemic began.
Sellers reduced asking prices for 19.8% of listings in September, nearly one-fifth of homes.

1 / 2