Overview
- Contracts to buy existing homes rose 1.8% in February to 72.1, beating expectations for a decline, according to the National Association of Realtors.
- NAR’s Lawrence Yun attributed the gain to improved affordability from earlier rate dips and cautioned that higher oil prices tied to the Iran conflict could lift mortgage rates again.
- Regionally, pending sales increased in the South, West and Midwest but fell in the Northeast, leaving February’s tally 0.8% below a year earlier.
- A Reuters poll now projects home prices to rise about 1.8% in 2026 and 2.5% in 2027, while analysts estimate a median shortfall of roughly 2.5 million homes.
- Builder sentiment ticked up to 38 in March, with NAHB reporting elevated costs, 37% of builders cutting prices by an average 6%, and 64% offering sales incentives.