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.United States Pending Home Sales Surge on Lower Mortgage Rates, Inventory Rises.
(Photo Internet reproduction)Meanwhile, actual existing home sales fell 5.9% in March, reversing Februarys 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.