U.S. Pending Home Sales Surge on Lower Mortgage Rates, Inventory Rises
The National Association of Realtors reported that pending home sales in the United States jumped 6.1% in March, marking the sharpest monthly increase since December 2023.
This figure surprised analysts, who had forecast a much smaller gain. The Pending Home Sales Index reached 76.5, still well below historical peaks, but the surge signals a notable shift in market activity.
Falling mortgage rates played a central role in this uptick. The average rate for a 30-year fixed mortgage dropped to 6.65% in March from 7.04% in mid-January. Buyers responded quickly, as even small changes in borrowing costs directly affect affordability.
The South saw the largest regional increase, with pending sales up 9.8%, while the Northeast slipped by 0.5%. The Midwest and West also posted solid gains.
Despite the monthly jump, pending sales remained 0.6% lower than a year earlier. The Northeast experienced the steepest annual decline, while the Midwest was the only region to post a yearly rise.
Meanwhile, actual existing home sales fell 5.9% in March, reversing February’s gains. The single-family segment led this decline, while condo and co-op sales held steady.
Inventory levels increased by 8.1% from February and nearly 20% from a year ago, reaching 1.33 million units. This rise in inventory could pressure prices if demand does not keep pace. Median home prices grew 2.7% year-on-year, but seasonally adjusted prices fell for the third straight month.
The data shows a market in flux. Lower mortgage rates and rising inventory have drawn buyers back, but affordability and economic uncertainty still weigh on long-term prospects.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief