Pending home sales in the U.S. rose 1.5% in March 2026, according to the National Association of Realtors (NAR). This increase significantly outperformed economist expectations of a 0.5% gain.
Key Performance Metrics
- Index Reading: The Pending Home Sales Index reached 73.7, its highest level in four months.
- Monthly Trend: This marks a continued recovery from January's all-time low of 70.9.
- Yearly Comparison: Despite the monthly gain, contract signings remain 1.1% lower than in March 2025.
- Regional Performance: Growth was driven by the Northeast (+4.4%) and the South (+3.9%), while the Midwest (-1.3%) and West (-2.6%) saw declines.
Market Dynamics
- Mortgage Rates: The average 30-year fixed mortgage rate climbed to 6.5% during March, the highest since last August, primarily due to inflation concerns stoked by the conflict in Iran.
- Pent-up Demand: NAR Chief Economist Lawrence Yun noted that the increase in signings despite higher rates points to significant pent-up demand, particularly in markets with stronger job growth like the South.
- Inventory Constraints: While inventory is slowly climbing, it remains a major constraint; NAR estimates an additional 300,000 to 500,000 homes are needed to reach normal market conditions.
Looking Ahead
- Sales Forecast: Due to rising mortgage rates, NAR has trimmed its 2026 existing-home sales outlook to a modest 4% increase for the full year.
- Next Update: The Pending Home Sales Index for April 2026 is scheduled for release on Tuesday, May 19, 2026, at 10:00 a.m. ET.
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