What did pending home sales look like in March 2025?
Pending home sales increased dramatically in March in three of four regions across the nation in the largest month-to-month gain since December 2023, the National Association of Realtors (NAR) said in a report released today.
The NAR’s chief economist expressed increasing optimism that sales will improve heading into the spring homebuying season as mortgage interest rates drop and more properties come onto the market.
"Home buyers are acutely sensitive to even minor fluctuations in mortgage rates," NAR Chief Economist Lawrence Yun said.
"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," Yun said in the NAR report.
Purchase contracts signed indicate pending home sales and are indicators of the general direction of the housing market.
Which regions showed changes in pending home sales?
Three of four regions the NAR tracks in the U.S. showed increases in pending sales in March from the previous month. They declined in one region, and this decline was relatively small.
- Signed contracts in the South increased the most, up 9.8% from the previous month.
- Pending sales in the Midwest increased 4.9% from the previous month.
- The West saw a jump of 4.8% in pending home sales from the previous month.
- The Northeast experienced a 0.5% decrease in pending sales from last month.
Other signals in the economy could also put more homes onto the market and make them more affordable, the NAR report indicated.
“Consumers should note that the spring homebuying season typically brings in a surge of home buyers and sellers compared to the winter months," Yun added in the NAR report. “In addition, inventory levels rose by 8.1% in March from the prior month, indicating a more dynamic housing-market environment."
Wintertime and the holiday season tend to be slower periods for home sales, and contract signing could pick up even more as mortgage interest rates decline and the weather warms up heading deeper into the spring homebuying season.
Did mortgage rates show any change?
According to data from Freddie Mac, the 30-year fixed rate mortgage averaged 6.81% as of April 24*. That’s down from 6.83% one week ago and down significantly from 7.17% one year ago.
Continued progress on mortgage rates cooling off will likely be a welcome sign to prospective homebuyers. A decrease in mortgage rates could also signal movement in the housing market as we head into the traditional spring homebuying season.
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* National average rates from Freddie Mac as of April 24, 2025, are not advertised rates from Guaranteed Rate Affinity.
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