US Pending Home Sales Jump 3.8% in May as Buyers Push Through 6.5% Mortgage Rates
Updated
Updated · Real Estate News · Jun 17
US Pending Home Sales Jump 3.8% in May as Buyers Push Through 6.5% Mortgage Rates
3 articles · Updated · Real Estate News · Jun 17
Summary
Signed US home contracts rose 3.8% in May from April and 4.8% from a year earlier, beating forecasts for a 1% gain.
Mortgage rates near 6.5% did not stop a late-spring buyer rush, with economists citing pent-up demand and growing buyer acceptance of above-6% borrowing costs.
The Northeast led the monthly gains with an 8.7% jump, followed by the Midwest at 8.1%, while the South and West posted smaller increases of 1% and 0.7%.
Affordability still limits all but higher-income buyers, and economists say elevated prices, inflation and seller caution could slow inventory growth and summer transactions.
May's rebound adds to signs of firmer spring housing demand, but sustained momentum may depend on easing economic uncertainty and inflation pressures tied partly to Middle East energy shocks.