Catenaa, Sunday, March 22, 2026- US pending home sales fell from a year earlier in February, signaling a slow start to the spring housing season despite lower mortgage rates and improving affordability.
The National Association of Realtors said its Pending Home Sales Index rose 1.8% from January but declined 0.8% year over year, reflecting cautious buyer activity as economic uncertainty and limited inventory weigh on demand.
Economists said the modest monthly increase aligns with seasonal trends, but the annual decline raises concerns as the peak buying season approaches. Mortgage rates hovered near 6% in February, below last year’s levels, yet buyers remained hesitant.
Analysts pointed to affordability challenges, economic concerns and fewer listings as key factors slowing activity. Some sellers delayed listing homes, while buyers questioned timing amid market volatility.
Mortgage rates have shown recent swings tied to global developments, including tensions affecting energy markets. Rates eased to about 6.29% in mid-March, offering some relief but not enough to drive strong demand.
Housing supply remains tight in many regions, restricting transaction volume. Inventory is only modestly higher than a year ago, leaving buyers with limited options during a critical period.
Regional differences persist. Markets in the West and South show improving supply and softer prices, while the Northeast and Midwest face shortages and higher costs.
Some indicators suggest conditions may improve. Wage growth has outpaced home price increases, easing affordability pressures. The median home price rose just 0.3% year over year in February, indicating slower price growth.
First-time buyers accounted for about one-third of transactions, reflecting gradual reentry into the market. Fewer homes are selling above asking price, signaling a shift toward more balanced conditions.
Economists said pent-up demand and slightly improved affordability could support activity in coming months. However, broader economic risks, including inflation and geopolitical tensions, may keep mortgage rates elevated.
The spring housing season is expected to remain sensitive to rate changes and inventory levels. Analysts said the market shows signs of improvement compared with last year but remains vulnerable to external pressures.
