Pending home sales in the U.S. increased by 1.8% in February 2026, defying analyst expectations of a 0.5% to 0.6% decline. This rebound follows two consecutive months of declines and was primarily driven by improved affordability as mortgage rates briefly dipped in early 2026.
February 2026 Performance Highlights
- National Index: The Pending Home Sales Index (PHSI) rose to 72.1, though it remains 0.8% lower than the same period last year.
- Regional Variance: Growth was uneven across the country:
- Midwest: +4.6% (the strongest performer due to higher affordability).
- South: +2.7%.
- West: +0.9%.
- Northeast: -3.6% (impacted by limited supply and higher price points).
- Market Context: While the monthly gain is a positive sign for the spring selling season, the National Association of Realtors (NAR) cautioned that progress could be fragile if rising oil prices or inflation push mortgage rates back up.
Understanding the Report
The National Association of Realtors® releases this report monthly as a leading indicator for the housing market.
- Definition: A "pending sale" means a contract has been signed for an existing home, but the transaction has not yet closed.
- Timeline: These contracts typically finalize into completed "existing-home sales" within one to two months.
- Baseline: An index of 100 represents the average level of contract activity in 2001.
The next Pending Home Sales report for March 2026 is scheduled for release on Tuesday, April 21, 2026, at 10 a.m. ET.National Association of REALTORS®
Would you like to see how these pending sales figures compare to the Existing-Home Sales data released earlier this month?
Complementing the pending sales data, the March 2026 Home Builder Confidence Report shows a slight uptick in optimism as the spring construction season begins.
March 2026 Builder Confidence Highlights
- National Index: The NAHB/Wells Fargo Housing Market Index (HMI) rose one point to 38. While this is an improvement, any reading below 50 indicates that more builders still view market conditions as "poor" rather than "good".
- Key Drivers: The modest gain was fueled by a recent dip in mortgage rates, which reached their lowest level since late 2022, encouraging some "on-the-fence" buyers to re-engage.
- Incentives and Price Cuts: To maintain sales momentum, builders remain aggressive with concessions:
- 37% of builders cut prices in March (up from 36% in February).
- 64% provided sales incentives, such as mortgage rate buydowns or closing cost assistance.
- Component Breakdown:
- Current Sales Conditions: Rose one point to 42.
- Sales Expectations (Next 6 Months): Increased two points to 49, nearing the neutral 50-point mark.
- Traffic of Prospective Buyers: Jumped three points to 25, the largest individual component gain.
Regional Builder Sentiment
Builder confidence remains highly localized due to varying land and labor costs:
- Northeast: Held steady at 44.
- Midwest: Unchanged at 43.
- South: Remained soft at 35.
- West: Declined to 31, as high-cost markets continue to struggle with affordability.
The National Association of Home Builders (NAHB) noted that while the trend is stabilizing, builders are closely monitoring geopolitical uncertainties and persistent inflation, which could impact construction costs and buyer demand later this year.
The next Housing Market Index update is scheduled for Monday, April 13, 2026.
Would you like to compare these builder sentiment figures with the latest Housing Starts data to see if this confidence is translating into new construction?
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