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Homebuyers are showing renewed interest this spring and this time, they may have a bit more optimism behind their return.
According to data released Wednesday by the National Association of Realtors (NAR), contract signings — a key measure of home sales — jumped 6.1 percent in March. That represents the biggest monthly gain since December 2023, when pending sales rose 7 percent. In contrast, February only saw a modest 2 percent uptick.
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While March’s numbers were still down slightly at 0.6 percent compared to a year ago, the monthly momentum suggests that buyers are continuing to cautiously reenter the market.
NAR Chief Economist Lawrence Yun noted slight dips in mortgage rates and steady job growth seem to be giving buyers just enough confidence to act.
Lawrence Yun | Chief economist at the National Association of Realtors
“Homebuyers are acutely sensitive to even minor fluctuations in mortgage rates,” Yun said in a statement. “While contract signings are not a guarantee of eventual closings, the solid rise in pending home sales implies a sizable build-up of potential homebuyers, fueled by ongoing job growth.”
In March, the average mortgage rate dipped to 6.65 percent, down from 6.96 percent in January and 6.84 percent in February — a subtle but meaningful shift for rate-conscious buyers. With more stable employment and slightly improved affordability, many seem ready to take the next step.
“Pending home sales rebounded 6.1 percent in March compared to the previous month, as interest rate-sensitive buyers seized the opportunity presented by a 20-basis point dip in mortgage rates,” First American Deputy Chief Economist Odeta Kushi said.
Regionally, the South led the gains with a 9.8 percent increase in contract signings, followed by the Midwest (+4.9 percent) and West (+4.8 percent). The only region to see a decline was the Northeast, where pending sales fell 0.5 percent. On an annual basis, only the Midwest saw year-over-year growth, with the South, West and Northeast still trailing behind 2024 levels.
Yun also noted that the seasonal upswing is in full effect. “Consumers should note that the spring homebuying season typically brings in a surge of homebuyers and sellers compared to the winter months,” Yun said. “In March, signed contracts surged 34.1 percent from February based on non-seasonally adjusted raw data, reflecting a pattern consistent with previous years.”
Odeta Kushi | First American Deputy Chief Economist
According to Yun, inventory is also starting to improve, with listings rising 8.1 percent in March compared to February, giving buyers more choices in the upcoming dynamic housing market environment.
Kushi also added, “Higher inventory levels also offered buyers more choices,” she said. “Although pending home sales are slightly down compared with last year, the month-over-month bounce is a step in the right direction.”
