Second-hand housing contracts in the US fell to a record low in September, and high mortgage interest rates continued to suppress demand for home purchases. According to data released by the US National Association of Realtors on Tuesday, the second-hand housing contract index fell sharply by 7.3% in September to 66, the lowest since records began in 2001. The decline far exceeded the predictions of the surveyed economists. Mortgage interest rates have continued to rise since the outbreak of the war in Iran, and have now risen to the highest level in nearly three years. The low volume of second-hand housing contracts indicates that it is difficult for the real estate market to recover at a time when borrowing costs and housing prices are high. The index of second-hand housing contracts, not adjusted for seasonal factors, fell nearly 13% year over year. NAR chief economist Lawrence Yun said in a statement: “Conditions in the second-hand housing market deteriorated in September due to the rapid rise in mortgage interest rates. Buyers and sellers are probably just waiting for mortgage interest rates to change in a favorable direction.” Another data released on Tuesday showed that construction of new homes in September slowed to one of its lowest levels since 2020.

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