Pending Home Sales Edge Up 0.3% in August Amid Sluggish Market
Event summary
- Pending home sales rose 0.3% month-over-month in August 2026 but fell 4.7% year-over-year.
- Regional performance varied: South (+2.3%) and West (+3.0%) saw gains, while Northeast (-4.2%) and Midwest (-1.6%) declined.
- Top 10 metro areas with year-over-year gains included Richmond, VA (+11.3%) and San Antonio-New Braunfels, TX (+6.6%).
- NAR Chief Economist Dr. Lawrence Yun attributed the sluggish market to higher mortgage rates offsetting job and income gains.
- Nationally, contract signings remain ~30% below pre-pandemic levels.
The big picture
The August 2026 Pending Home Sales Report highlights a housing market struggling to regain momentum post-pandemic. While regional variations exist, the broader trend of lower contract signings reflects the lingering impact of higher mortgage rates. The data suggests a market still adjusting to post-2021 conditions, where historically low rates fueled peak activity. Investors and operators should monitor how economic factors like job gains and income growth balance against rising borrowing costs.
What we're watching
- Regional Disparities
- Whether the Northeast and Midwest can sustain home price growth amid declining contract signings.
- Mortgage Rate Impact
- How rising mortgage rates will continue to affect buyer behavior and market activity.
- Metro-Level Trends
- The pace at which smaller markets like Richmond and San Antonio outperform larger metros.