As Mortgage Rates Dip, Pending Home Sales Increase

Homeowners took advantage of a temporary dip in mortgage rates during March. According to National Mortgage Professional, pending home sales increased by 6.1% month-over-month. This was the largest month-over-month increase since December 2023 when pending home sales grew by 7%. At the same time, mortgage rates fell by around 20 to 30 basis points in March compared with the first two months of this year. The average mortgage rate was 6.65% in March, which was down from a 6.96% average in January.

While the Midwest, South, and West all saw an uptick in pending sales, the Northeast was the only region to see a month-over-month decline in sales. At a 9.8% increase, the South saw the most growth in pending sales.

"Home buyers are acutely sensitive to even minor fluctuations in mortgage rates," said NAR Chief Economist Lawrence Yun. "While contract signings are not a guarantee of eventual closings, the solid rise in pending home sales implies a sizable build-up of potential home buyers, fueled by ongoing job growth." Read more