Is a housing market resurgence on the way?
Pending home sales, homes under contract but not yet closed, spiked in March, jumping by 6.1% and posting their largest monthly increase since December 2023.
The National Association of Realtors (NAR) said Wednesday that gains in the Midwest, South and West offset a monthly decline in the Northeast, although only the Midwest saw contract signings increase compared with the same time last year.
On an annual basis, the NAR’s Pending Home Sales Index – which measures pending home sales based on contract signings – stayed largely flat, ticking upwards by just 0.6%.
The NAR’s chief economist Lawrence Yun said the figures suggested plenty of pent-up demand for housing even despite stubbornly high mortgage rates and an uncertain economic outlook.
“Homebuyers are acutely sensitive to even minor fluctuations in mortgage rates,” Yun said in remarks accompanying the release. “While contract signings are not a guarantee of eventual closings, the solid rise in pending home sales implies a sizable build-up of potential homebuyers, fueled by ongoing job growth.”
The stronger demand seen in March was consistent with seasonal trends, Yun added. “Consumers should note that the spring homebuying season typically brings in a surge of homebuyers and sellers compared to the winter months,” he said.
Pending home sales increased 6.1% in March – the greatest month-to-month increase since December 2023. https://t.co/0fyD82tvWw
— National Association of REALTORS® (@nardotrealtor) April 30, 2025
“In March, signed contracts surged 34.1% from February based on non-seasonally adjusted raw data, reflecting a pattern consistent with previous years. In addition, inventory levels rose by 8.1% in March from the prior month, indicating a more dynamic housing market environment.”
While mortgage rates remain well above the lows seen during the pandemic, when lower borrowing costs spurred a housing market boom, they’ve slid so far this year. In January, the average mortgage rate hovered near the 7% mark – but it had cooled to 6.84% in February, and 6.65% by March.
But they still haven’t fallen far enough to propel a big increase in existing-home sales, which the NAR said slowed by 5.9% last month as the median existing-home price jumped by 2.7% to an all-time March high of $403,700.
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