U.S. Pending Home Sales Rise Again Despite Mortgage Rate Pressure — Evening Brief – 05.19.26

U.S. pending home sales rose for a second consecutive month in April as buyers cautiously reentered the housing market despite elevated mortgage rates and broader economic uncertainty, according to new data from the National Association of Realtors.

The Pending Home Sales Index increased 1.4% month over month to 74.8 in April, exceeding economist expectations for a 0.9% gain. The March reading was also revised higher to a 1.7% increase from the previously reported 1.5% advance. Pending transactions rose 3.2% from a year earlier.

The gains suggest buyer demand is stabilizing even as affordability remains strained across much of the U.S. housing market. Regionally, pending sales increased in the Northeast, Midwest and West, while the South recorded a decline.

“Buyers are coming out with cautious optimism despite increasing economic uncertainty and a slight rise in mortgage rates,” said Lawrence Yun. “Demand will easily be even higher once mortgage rates retreat to the levels they were at earlier this year.”

Several metropolitan markets posted strong year-over-year gains, including Boston-Cambridge-Newton, Massachusetts-New Hampshire, where pending sales climbed 10.3%, followed by Miami-Fort Lauderdale-West Palm Beach, Florida, at 9.4%, and Oklahoma City at 8.6%.

Yun cautioned, however, that limited inventory continues supporting home prices and creating affordability pressure for prospective buyers.

“Historically low foreclosure sales imply minimal price discounts, with a majority of markets selling at a higher price from a year ago,” Yun said. “Unless supply meaningfully increases, home price growth could outpace wage growth and further erode the homeownership rate.”