That is the 3rd monthly drop in the last 4 months and leaves pending home sales down over 7% year-over-year.

"Contract transactions slowed a bit in September and are showing signs of a calmer home price trend, as the market is running comfortably ahead of pre-pandemic activity," said Lawrence Yun, NAR's chief economist.

"It's worth noting that there will be less inventory until the end of the year compared to the summer months, which happens nearly every year.

"Rents have been mounting solidly of late, with falling rental vacancy rates," Yun said.

"This could lead to more renters seeking homeownership in order to avoid the rising inflation,"

Because if you can't afford to rent, you can afford a million-dollar starter-home?

Signings declined in all four U.S. regions from the prior month, led by a 3.5% drop in the Midwest

"Some potential buyers have momentarily paused their home search with intentions to resume in 2022."

Pending sales are a forward-looking indicator of closed sales in 1-2 months so this decline suggests trouble ahead for the rebounding sentiment among homebuilders.