US Pending Home Sales Rise 1.4% in April as Mortgage Rates Briefly Fell Below 6%

5 articles · Updated · Reuters · May 19

The pending home sales index climbed 1.4% to 74.8 in April, beating economists’ 1.0% forecast and marking a third straight monthly increase.
Freddie Mac’s 30-year mortgage rate had dropped to 5.98% before the Middle East conflict, helping pull buyers back in, but ended April at 6.30% and has since risen to 6.36%.
Regional demand was uneven: contract signings jumped 6.6% in the Northeast and 3.0% in the Midwest, edged up 0.4% in the West and fell 0.7% in the South; sales were up 3.2% from a year earlier.
Economists still expect a subdued housing market because inventory remains well below pre-pandemic levels—especially for starter homes—while high borrowing costs, tariffs and weak consumer confidence keep affordability under pressure.
That backdrop is already hitting the broader sector: residential investment has contracted for five straight quarters, and homebuilder sentiment stayed subdued in May.

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