US Pending Home Sales Rise Further

US pending home sales rose by 1.5% from the previous month in March of 2026, extending the upwardly revised 2.5% increase from February, and significantly outperforming the market expectation of a 0.1% increase. The increase was carried by a 4.4% increase in the Northeast region and a 3.8% jump in the South region, which offset the 2.6% drop in the West and 1.3% decrease in the Midwest. “Contract signings rose in March despite higher mortgage rates, pointing to pent-up housing demand,” said NAR Chief Economist Dr. Lawrence Yun. “A greater supply of inventory will help translate that demand into more home sales. Demand sensitivity to mortgage rates is greatest among first-time buyers, particularly younger buyers,” Yun said. “As a result, boosting supply and new-home construction should focus on smaller, more affordable homes.”

US pending home sales increased by 1.8% month-over-month in February 2026, reversing two consecutive months of declines and surpassing market expectations of a 0.5% drop. Regional performance varied, with gains in the Midwest (+4.6%), South (+2.7%), and West (+0.9%), while the Northeast saw a decline (-3.6%). On a year-over-year basis, pending home sales fell by 0.8%. According to NAR Chief Economist Dr. Lawrence Yun, the modest rise in pending contracts reflects improved affordability conditions, though this progress could be threatened if rising oil prices push mortgage rates higher. Yun noted that the Midwest, being the most affordable region, led the gains in February, while the Northeast struggled due to elevated home prices and limited supply.

US pending home sales fell 0.8% month over month in January 2026, extending a revised 7.4% decline in December and missing expectations for a 1.3% increase. The second consecutive monthly drop highlights ongoing pressure in the US housing market, despite lower mortgage rates. Regionally, sales fell in the Northeast (-5.7%) and South (-4.5%), while the Midwest (5.0%) and West (4.3%) saw gains. On a year-over-year basis, pending home sales were down 0.4%. “Improving affordability conditions have yet to induce more buying activity,” said Lawrence Yun, Chief Economist at the National Association of Realtors. “With mortgage rates nearing 6%, an additional 5.5 million households that could not qualify for a mortgage one year ago would qualify at today’s lower rates.” Yun also warned that without an increase in housing supply, new buyers entering the market could push prices even higher, intensifying affordability pressures and highlighting the urgent need for more home construction.