Pending Home Sales Hit Highest Level in Nearly 4 Years

More homebuyers jumped into the market as home loan rates boiled down temporarily last week, however it’s still slower than past springs.

U.S. pending home sales struck their greatest level given that September 2022 during the four weeks ending May 3. They increased 7.7% year over year on a seasonally changed basis.

There are a couple of reasons property buyers are coming off the sidelines:

• Real estate costs boiled down briefly. The typical U.S. real estate payment decreased 2.2% year over year as home mortgage rates ticked down. Rates was up to 6.23% recently from a 6-month high of 6.46% 2 weeks earlier. (Day-to-day typical rates increased as high as 6.56% today due to jitters about restored combating and uncertainty in Iran.)
• There are more homes on the marketplace. The total variety of homes for sale increased approximately 1% year over year to near their greatest level in at least five years. When there are more homes to buy, there are more sales.
• Seasonality is kicking in later than normal. Spring is usually the busiest time of year for the housing market: A recent Redfin analysis discovered that late April is the very best time of year to note a home for sale since homes are more likely to offer above their asking price, and to sell quickly. The big uptick in seasonally changed pending sales could signify that spring homebuying season is beginning late.

Still, the market is slower and less competitive than past springs. The common home that offers goes under agreement in 43 days, 3 days longer than a year ago. Just over one-quarter (26.4%) of homes that go under agreement are offering above asking price, the most affordable share for this time of year in a minimum of five years.

“Some homes are drawing in numerous deals, but just those that are priced fairly and have been upgraded,” said Ashley Arzer, a Redfin Premier agent in Chicago. “A new cooking area and new bathroom are the ticket to a bidding war. Older homes that need repairs, and those far above the most popular rate range– around $400,000 in Chicago– are taking longer to offer.”

For Redfin financial experts’ takes on the real estate market, please go to Redfin’s “From Our Economic experts” page.

Leading signs

Indicators of homebuying

was the greatest level because end of March Down from 6.9% Mortgage News

%Freddie Mac Mortgage-purchase applications( seasonally adjusted) Down 4% from a week previously (as of week ending May 1 )Up 5%Mortgage Bankers Association Google searches of”homes for sale”Highest level in 9 months(as of May 4) Up more than 20%Google Trends Visiting activity Up 32 %from the start of the year(since May 4)At this time last year, it was up 43 %from the start of 2025 ShowingTime Secret housing-market data U.S. highlights: 4 weeks ending May 3, 2026 Redfin’s national