U
S pending home sales surged 6.1% in March, marking the largest month-over-month increase since December 2023, according to the National Association of Realtors (NAR). This growth was driven by gains in the Midwest, South, and West regions, with the South experiencing the most significant expansion. However, compared to a year ago, contract signings declined in the Northeast, South, and West.

    The Pending Home Sales Index (PHSI) rose to 76.5 in March, up from the previous month but down 0.6% annually. NAR Chief Economist Lawrence Yun attributed the strong uptick in pending sales to steady job gains and a growing pool of prospective buyers responding to declining mortgage rates. Mortgage rates fell by approximately 20-30 basis points in March, with an average rate of 6.65%.

    Regional highlights show the Northeast's PHSI slipping 0.5% to 62.5, while the Midwest rose 4.9% to 77.7 and the South surged 9.8% to 94.1. The West saw a 4.8% increase to 58.6, but remained 2.0% lower than March 2024.

    Yun noted that spring typically brings more activity to the housing market, with non-seasonally adjusted contract signings rising 34.1% from February and inventory increasing 8.1% month-over-month. This suggests a more active and competitive housing market.