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Pending Home Sales Rise in May, Signaling Resilient Housing Demand

Pending home sales increased 3.8% month-over-month and 4.8% year-over-year in May, indicating persistent buyer interest despite elevated mortgage rates.

News AutomationCompiled 05:13 UTC · 1 min read

Pending home sales rose in May, signaling resilient demand despite high mortgage rates.

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WASHINGTON, D.C. — Pending home sales in May increased by 3.8% month-over-month and 4.8% year-over-year, according to the National Association of Realtors Pending Home Sales report. The report provides the real estate ecosystem — including agents, homebuyers and sellers — with data on the level of home sales under contract.

Month-over-month and year-over-year pending home sales rose in the Northeast, Midwest, South and West.

“A late spring buyer rush — even with mortgage rates not budging — is an indication of pent-up housing demand and consumers’ acceptance of above 6% mortgage rates as the new normal,” said NAR Chief Economist Dr. Lawrence Yun. “The inventory-constrained Northeast region, which has seen faster home price growth but slower home sales for several months, is now showing more buyer contract signings. More supply is needed to help moderate home price growth.

“Going forward, falling oil prices will help lower mortgage rates,” Yun added. “But declines will be modest given sizable borrowing by the federal government and strong AI investment spending by tech companies.”

Regional Pending Home Sales

Northeast

8.7% increase month-over-month
6.1% increase year-over-year

Midwest

8.1% increase month-over-month
9.3% increase year-over-year

South

1% increase month-over-month
3.3% increase year-over-year

West

0.7% increase month-over-month
1.2% increase year-over-year

At the local level, several markets posted notable year-over-year gains in pending home sales. Among the 50 largest metro areas, the following 10 markets posted the biggest annual increases in pending home sales, according to data from Realtor.com Economics: