May Pending Home Sales: From Pre-Pandemic Strength to Today's Recovery
Pending home sales in May 2026 rose strongly, up 3.8% month‑over‑month and 4.8% year‑over‑year, signaling a recovery despite mortgage rates holding above 6%. Regional gains were broad, with the Midwest and Northeast leading the surge
National Trends
- Sales Growth: Pending home sales climbed 3.8% from April and 4.8% compared to May 2025.
- Buyer Demand: A late spring rush shows pent‑up demand, even with mortgage rates above 6%.
- Market Acceptance: Consumers are increasingly treating higher mortgage rates as the “new normal.”
Regional Breakdown
- Northeast: +8.7% month‑over‑month, +6.1% year‑over‑year. Inventory shortages remain, but contract signings are rising.
- Midwest: +8.1% month‑over‑month, +9.3% year‑over‑year, the strongest regional rebound.
- South: +1.0% month‑over‑month, +3.3% year‑over‑year.
- West: +0.7% month‑over‑month, +1.2% year‑over‑year.
Market Insights
- Inventory Constraints: The Northeast’s limited supply continues to push prices higher.
- Economic Factors: Falling oil prices may ease mortgage rates slightly, but federal borrowing and AI investment spending will keep declines modest.
- Local Standouts: Among the 50 largest metros, Kansas City (+20.1%), San Antonio (+15.7%), and Miami (+11.4%) posted the biggest annual gains.
Source>> https://www.nar.realtor/news/economists-outlook/may-pending-home-sales-from-pre-pandemic-strength-to-todays-recovery