Particle.news
Download on the App Store

Pending Home Sales Rebound as Builder Confidence Inches Up, but Rate Jitters Threaten Spring

A short-lived drop in mortgage costs lifted contracts before rising oil and Treasury yields pushed borrowing rates higher again.

Overview

  • The National Association of Realtors’ Pending Home Sales Index rose 1.8% in February to 72.1, though it was 0.8% below February 2025.
  • Contracts increased in the Midwest, South and West but fell in the Northeast, with metros such as San Diego, Jacksonville and San Jose posting the strongest year-over-year gains.
  • Mortgage rates briefly dipped below 6% early in 2026, then moved higher as the U.S.-Israeli war with Iran lifted oil prices and Treasury yields, threatening recent affordability gains.
  • NAHB’s Housing Market Index ticked up to 38 in March, extending a stretch below the 50 breakeven, and 37% of builders reported price cuts averaging 6% as incentives remained widespread.
  • Underlying supply signals stayed weak with single-family starts down 2.8% in January to a 935,000 annual rate, while Canada’s February resales fell 1.3% month over month and 8.1% year over year, highlighting regional divergence.