Inman News
Pending sales surged even as mortgage rates climbed nearly half a point in the month
Pending home sales posted their largest March increase in five years, even as mortgage rates rose, according to Zillow’s March Market Report released Monday.
Newly pending listings rose 4.6 percent from a year earlier, reaching the second-highest monthly total since the post-pandemic market slowdown began in August 2022. The 29.8 percent month-over-month increase represented a five-year high for March.
Rates rise, but buyers keep shopping
Mortgage rates climbed from 5.98 percent at the end of February to 6.38 percent in late March, according to Freddie Mac, pushing the typical monthly mortgage payment up 1.5 percent from February to $1,789, excluding taxes and insurance. Despite that pressure, average daily page views per for-sale listing on Zillow were 32 percent higher than a year earlier.
“We have persistent signals that the market has turned a corner,” Zillow Chief Economist Mischa Fisher said, citing pent-up demand, earlier-year rate tailwinds, and weather disruptions in January and February as factors supporting the spring market.
Values up, inventory grows for 28th straight month
The typical U.S. home value reached $365,545 in March, up 0.8 percent year over year — a slight acceleration from February’s 0.4 percent annual gain. Inventory rose 4.2 percent annually, marking the 28th consecutive month of year-over-year gains, while new listings were almost flat, up 0.1 percent.
Homes took a median of 19 days to go pending, two days longer than a year ago but nine days faster than February.
Whether March’s momentum carries into spring is an open question. National Association of Realtors Chief Economist Lawrence Yun told Inman last week he is revising his forecast downward after rates surged following the U.S.-Israel military campaign in Iran, pushing borrowing costs above the 6 percent threshold he has identified as critical for buyer affordability.
Yun had earlier projected a 14 percent jump in home sales for 2026.
Zillow’s April Market Report is expected May 6.