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Housing Market · Mortgage Rates · Pending Sales · Real Estate
Pending home sales in the U.S. increased by 1.5% month-over-month in March, according to the National Association of Realtors, despite higher mortgage rates, indicating persistent buyer demand.
This rise follows a 1.1% decline in pending sales year-over-year. Regionally, month-over-month sales rose in the Northeast and South but declined in the Midwest and West.
Year-over-year, only the South experienced an increase, while the Northeast, Midwest, and West saw declines. Dr.
Lawrence Yun, chief economist for the National Association of Realtors, stated that contract signings rose due to pent-up housing demand, emphasizing that a greater supply of inventory is necessary to convert this demand into actual home sales. Yun also noted that demand sensitivity to mortgage rates is highest among first-time and younger buyers, suggesting that boosting supply should focus on smaller, more affordable homes.
He highlighted that many Southern markets experienced price cuts and strong job growth over the past year, a combination expected to drive stronger housing market activity in the South this year.