Pending home sales rose in March despite higher mortgage rates

Pending home sales increased 1.5% month‑over‑month in March (down 1.1% year‑over‑year), while mortgage rates climbed to about 6.38% by month’s end amid Middle East tensions that also pushed gas prices higher.

Pending home sales ticked higher in March even as borrowing costs and gas prices moved up. The National Association of Realtors reported contract signings rose 1.5% from February but were down 1.1% from a year earlier. NAR Chief Economist Lawrence Yun described the increase as evidence of pent‑up demand and said more supply would help convert that demand into completed sales. Realtor.com data showed fresh inventory gains and lower median list prices, which economists say support near‑term activity. Key details: - Contract signings rose 1.5% from February but fell 1.1% year over year, according to the NAR Pending Home Sales report. - Mortgage rates climbed from about 6.11% in mid‑March to roughly 6.38% by month‑end; the report and economists linked the rise to ongoing conflict in the Middle East that also pushed gas prices higher. - Realtor.com’s March report showed pending listings up 3.9% year over year and new listings up 21.2% from February to 439,000, while the national median list price fell 2.2% year over year. - Regionally, pending sales rose month‑over‑month in the Northeast and South and eased in the Midwest and West; year‑over‑year gains occurred only in the South. - Economists noted pent‑up demand, improving inventory and lower list prices as supportive factors, while warning that geopolitical uncertainty and volatile rates could interrupt the recovery. Summary: The March uptick in pending sales suggests modest momentum that may lead to improved closings in April and May, supported by rising listings and lower median list prices. At the same time, persistent geopolitical uncertainty and choppy rate movements present a downside risk to that outlook.