U.S. Existing and Pending Home Sales Surge in May 2026 Despite High Mortgage Rates
In May 2026, U.S. existing home sales rose 3.2% year-over-year to 4.17 million units, while pending home sales jumped 3.8% month-over-month—the largest gain since September 2024. The increases occurred despite mortgage rates hovering around 6.5%, driven by the Iran war and inflation at 4.2%. Sales improved across all U.S. regions except the Northeast. NAR chief economist Lawrence Yun cited pent-up demand and consumer acceptance of higher rates, but warned that wage growth lagging inflation and oil price uncertainty pose risks to a full recovery.
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US pending home sales see biggest gain since September 2024
US pending home sales surged 3.8% in May to 76.8, the largest gain since September 2024, according to the National Association of Realtors. This marks the fourth consecutive monthly increase, signaling a sustained recovery in the beleaguered home resale market. The gain exceeded all estimates in a Bloomberg survey. Pending sales rose in all US regions, with the Northeast leading at 8.7% month-over-month. NAR chief economist Lawrence Yun attributed the uptick to pent-up demand and consumer acceptance of mortgage rates above 6% as the new normal. Mortgage rates are currently hovering at 6.6%, near nine-month highs. The data is considered a leading indicator of future home closings, as contracts typically go under contract one to two months before sale completion.
The Business TimesUS Pending Home Sales See Biggest Gain Since September 2024
In May 2026, US pending home sales experienced their largest increase in nearly two years, rising 3.8% to an index level of 76.8. This marks the fourth consecutive monthly gain, indicating ongoing improvement in the housing market. The data, reported by the National Association of Realtors, suggests a positive trend in contract signings for existing homes, reflecting potential stabilization or recovery in the US real estate sector. The report was published by The Business Times on June 17, 2026.
The Business TimesMore homes went under contract in 'late spring buyer rush'
The National Association of Realtors reported that the Pending Home Sales Index rose 4.8% year-over-year and 3.8% month-over-month in May 2026, indicating a late spring buyer rush despite high mortgage rates around 6.4-6.5% and elevated inflation at 4.2%. Sales increased across all US regions, led by a 9.3% jump in the Midwest, which homebuyers favor for affordability. NAR chief economist Lawrence Yun attributed the surge to pent-up demand and consumer acceptance of above-6% mortgage rates as the new normal. The data suggests home sales are tracking ahead of last year, following a 3.2% increase in May, despite initial concerns that inflation and geopolitical tensions (war in Iran) would sideline buyers.
Yahoo FinanceMore homes went under contract in 'late spring buyer rush'
The Pending Home Sales Index rose 4.8% year-over-year and 3.8% month-over-month in May 2026, according to the National Association of Realtors. The increase, described as a 'late spring buyer rush' by NAR chief economist Lawrence Yun, occurred despite mortgage rates remaining around 6.4%-6.5% and elevated inflation. All regions of the US saw gains, led by a 9.3% jump in the Midwest, which homebuyers favor for affordability. The data suggests pent-up housing demand and consumer acceptance of above-6% mortgage rates as the new normal. Pending home sales are an early indicator of future sales activity.
Yahoo FinanceHome sales jumped in May as buyers shrugged off higher mortgage rates
Existing home sales in May 2026 rose 3.2% year-over-year to a seasonally adjusted annual rate of 4.17 million, according to the National Association of Realtors. Month-over-month sales also increased 3.2%, marking one of the best showings in three years. The uptick occurred despite mortgage rates hovering around 6.5% due to the Iran war and inflation concerns. Sales increased in all U.S. regions except the Northeast, where supply remains constrained. NAR chief economist Lawrence Yun cautioned that uncertainty around oil prices and mortgage rates persists, and a full housing market recovery faces headwinds including wage growth lagging inflation. Yun noted that sales could rise further if mortgage rates return to 6%, but that outcome is not guaranteed.
Yahoo FinanceHome Sales Jumped in May as Buyers Shrugged Off Higher Mortgage Rates
Existing home sales in May 2026 rose 3.2% year-over-year to a seasonally adjusted annual rate of 4.17 million, according to the National Association of Realtors. Month-over-month sales also increased 3.2%, marking one of the best showings in three years. The uptick occurred despite mortgage rates hovering around 6.5% due to economic shocks from the Iran war. Sales rose in all U.S. regions except the Northeast, where supply remains constrained. Economists note that improved inventory, slightly lower rates, and strong wage growth are helping bring buyers back, but challenges persist: wage growth has slipped below inflation, and mortgage rates remain elevated. NAR chief economist Lawrence Yun cautioned that uncertainty around oil prices and rates makes it unclear if the housing market is truly emerging from its slump. A return to 6% mortgage rates could further boost sales, but that outcome is not guaranteed.
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