Pending Home Sales Drop to a Record Low, Worse Than During the 2008 Great Financial Crisis

In October, U.S. pending home sales plunged 1.5%, reaching their lowest level since 2001, surpassing the downturn observed during the Great Financial Crisis. This significant drop, which marked an 8.5% decline from the previous year, reflects an acute crisis in the housing market. High mortgage rates, which momentarily exceeded 8%, combined with a severe shortage of available homes, have drastically suppressed housing demand. The situation is particularly dire in the West, where the decline in home sales has been most severe, indicating a market contraction worse than what was experienced during the Great Financial Crisis.