Pending Home Sales Rise 1.5% in March Despite Higher Mortgage Rates

Event summary

  • Pending home sales increased 1.5% month-over-month in March 2026 but declined 1.1% year-over-year.
  • Regional performance varied: Northeast (+4.4% MoM, -6.5% YoY), Midwest (-1.3% MoM, -3.1% YoY), South (+3.9% MoM, +2.3% YoY), West (-2.6% MoM, -1.7% YoY).
  • Top 10 metro areas with largest annual gains in pending home sales include Kansas City (+14.9%) and Milwaukee (+13.5%).
  • NAR Chief Economist Dr. Lawrence Yun attributes rise to pent-up demand and calls for more affordable housing supply.
  • Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes.

The big picture

The March 2026 Pending Home Sales Report indicates resilient demand despite higher mortgage rates, driven by regional job growth and price adjustments. The data suggests a need for increased housing supply, particularly in affordable segments, to sustain market momentum. The report's leading indicator role highlights potential shifts in the housing sector's near-term trajectory.

What we're watching

Regional Disparities
Whether the South's stronger performance can offset declines in other regions.
Affordability Focus
How increased supply of smaller, more affordable homes will impact market activity.
Mortgage Rate Impact
The pace at which higher mortgage rates will affect first-time and younger buyers.