US Pending Home Sales Jump 3.8% in May

US pending home sales surged 3.8% month-over-month in May 2026, following a downwardly revised 0.3% rise in April and exceeding market expectations of 0.8%. This marked the steepest monthly increase since September 2024, with gains across all regions: Northeast (+8.7%), Midwest (+8.1%), South (+1.0%), and West (+0.7%). Year-over-year, pending home sales rose 4.8%. NAR Chief Economist Dr. Lawrence Yun noted that a late spring buyer rush, even with mortgage rates holding steady above 6%, signals pent-up housing demand and growing acceptance of higher rates as the new normal. “The inventory-constrained Northeast region, which has seen faster home price growth but slower home sales for several months, is now showing more buyer contract signings. More supply is needed to help moderate home price growth,” he added.

US pending home sales increased 1.4% month-over-month in April 2026, following an upwardly revised 1.7% gain in March and surpassing market expectations of 1%. This marks the third consecutive month of growth, with rises in the Northeast (6.6%), Midwest (3.0%), and West (0.4%). Year-over-year, pending sales climbed 3.2%. NAR Chief Economist Dr. Lawrence Yun noted, “Buyers are returning with cautious optimism despite economic uncertainty and a slight rise in mortgage rates. Demand would be even stronger if mortgage rates returned to earlier 2026 levels.” He added that historically low foreclosure sales mean minimal price discounts, with most markets seeing higher prices than a year ago. Yun warned, “Unless supply increases significantly, home price growth could outpace wage growth, further reducing homeownership rates. All efforts must focus on boosting housing supply.”

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.”