Pending Home Sales Rise 1.8% in February, Signaling Mixed Regional Trends

Event summary

  • Pending home sales increased 1.8% month-over-month in February 2026 but declined 0.8% year-over-year.
  • Regional performance varied: Midwest (+4.6% MoM), South (+2.7% MoM), West (+0.9% MoM), Northeast (-3.6% MoM).
  • Top 10 metro areas with year-over-year gains include San Diego (+13.5%) and Jacksonville (+12.1%).
  • NAR Chief Economist Dr. Lawrence Yun cited improved affordability but warned of potential mortgage rate hikes due to oil prices.
  • The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes.

The big picture

The February 2026 Pending Home Sales Report highlights a mixed regional landscape, with affordability improvements driving modest gains. The data suggests a housing market in transition, influenced by macroeconomic factors like oil prices and mortgage rates. The report underscores the importance of monitoring regional disparities and the potential release of pent-up demand, which could significantly impact future market dynamics.

What we're watching

Affordability Dynamics
How rising oil prices will impact mortgage rates and affordability conditions.
Regional Disparities
Whether the Midwest's strong performance can be sustained amid Northeast's challenges.
Pent-Up Demand
The pace at which pent-up demand from first-time homebuyers will be released into the market.