Pending sales of existing U.S. homes fell to a record low in September as high mortgage rates continued to weigh on demand.

An index of contract signings from the National Association of Realtors tumbled 7.3% to 66 last month, its lowest reading since records began in 2001, according to data released Tuesday. The decline was sharper than any estimate in a Bloomberg survey of economists.

The bleak reading is the latest in a series of reports showing the U.S. housing market remains mired in gridlock amid high borrowing costs and home prices. Mortgage rates have been climbing since the outset of the Iran war and are now at the highest levels in almost three years.

Contract signings are down nearly 13% from a year ago, based on data unadjusted for seasonal variations.

“Market conditions weakened in September due to fast-rising mortgage rates,” NAR Chief Economist Lawrence Yun said in a statement. “Buyers and sellers may simply be holding back until mortgage rates move favorably.”

Contract signings typically take place a month or two before closings. They have historically served as a forward-looking indicator of existing-home sales.

Pending home sales plummeted across all U.S. regions. The West saw the steepest decline of 9.2%, while sales in the South — the biggest home-selling region — fell 8.2%.

Separate data released Tuesday showed groundbreakings of new homes slowed last month to one of the weakest readings since 2020.

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