Pending Home Sales Jumped 6.1% in March

Pending home sales rose by 6.1% in March, marking the largest month-to-month increase since December 2023, when sales grew by 7.0%, according to the National Association of REALTORS® (NAR). Regionally, the Northeast saw a slight decline in pending transactions, while the Midwest, South, and West experienced gains, with the South showing the most significant increase. On a year-over-year basis, contract signings increased in the Midwest but decreased in the Northeast, South, and West, with the Northeast facing the steepest drop.

Mortgage rates declined by approximately 20 to 30 basis points during March compared to the first two months of the year. The average mortgage rate in March was 6.65%, down from 6.96% in January and 6.84% in February. NAR Chief Economist Lawrence Yun noted that homebuyers remain highly sensitive to even small changes in mortgage rates, and while contract signings do not guarantee final sales, the rise in pending home sales suggests a growing pool of potential buyers supported by ongoing job growth

Pending Home Sales Regional Breakdown

The Northeast PHSI dropped 0.5% from last month to 62.5, down 3.0% from March 2024. The Midwest index expanded 4.9% to 77.7 in March, up 1.4% from the previous year.

The South PHSI soared 9.8% to 94.1 in March, down 0.4% from a year ago. The West index climbed 4.8% from the prior month to 58.6, down 2.0% from March 2024.

Source: NAR.