Pending home sales increased 3.8% month-over-month in May and 4.8% year-over-year, according to the National Association of Realtors' Pending Home Sales report.
Pending sales in the Northeast increased 8.7% month-over-month and 6.1% year-over-year, while in the Midwest they rose 8.1% month-over-month and 9.3% year-over-year. Pending sales in the South increased 1.0% month-over-month and 3.3% year-over-year, and in the West they increased 0.7% month-over-month and 1.2% year-over-year.
"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," NAR Chief Economist Dr. Lawrence Yun said. "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 said. "But declines will be modest given sizable borrowing by the federal government and strong AI investment spending by tech companies."
Read the full report here.
