United States pending home sales improved slightly in March 2026, despite higher mortgage rates.
They increased by 1.5% month-over-month and 1.1% year-over-year, according to data from the National Association of Realtors (NAR) Pending Home Sales report.
Month-over-month pending home sales rose in the Northeast and South, and declined in the Midwest and West. Year-over-year pending home sales rose in the South, and declined in the Northeast, Midwest and West.
“Contract signings rose in March despite higher mortgage rates, pointing to pent-up housing demand,” NAR Chief Economist Lawrence Yun said.
“A greater supply of inventory will help translate that demand into more home sales.
“Demand sensitivity to mortgage rates is greatest among first-time buyers, particularly younger buyers.
“As a result, boosting supply and new-home construction should focus on smaller, more affordable homes.”
At the same time, mortgage rates began to soar due to the conflict in the Middle East.
The 30-year fixed mortgage rate averaged 6.38% at the end of March, according to data from mortgage finance agency Freddie Mac.
It averaged 5.98% at the end of February before the war started.
The NAR also reported that existing home sales fell to a nine-month low in March, with housing affordability becoming a potent issue ahead of the November midterm elections.
