A temporary pullback in mortgage rates and slightly higher inventory helped push pending contracts to their strongest level in nearly four years, Redfin says.
Source: Original report
Pending U.S. home sales rose to their strongest level since September 2022 during the four weeks ending May 3, Redfin reported, with seasonally adjusted pending contracts up 7.7% year over year. The uptick coincided with a brief easing in mortgage costs that encouraged some buyers to re-enter the market.
What drove the rise in pending contracts
- Mortgage costs eased briefly: The typical U.S. monthly housing payment fell about 2.2% year over year as average mortgage rates dipped to roughly 6.23% last week from a two-week earlier level near 6.46%. Daily averages later moved higher in response to geopolitical jitters, reaching as much as 6.56% during the week.
- More homes for sale: Total inventory increased about 1% year over year, approaching the highest level seen in at least five years. More listings generally translate into more transactions.
- Spring activity arrived late: Redfin’s seasonally adjusted pending-sales jump could reflect a delayed spring buying season rather than a full return to the pace of prior springs.
Market still cooler than typical springs
Despite the rise in pending deals, competition remains muted compared with earlier spring periods. The median time from listing to contract is 43 days, three days longer than a year ago. Just 26.4% of homes going under contract are selling above their asking price — the smallest share for this time of year in at least five years.
Local brokers say multiple-offer situations are limited to homes that are competitively priced and updated. In places like Chicago, for example, properties with modern kitchens and renovated bathrooms are most likely to attract bidding wars, while older homes in need of repairs or those priced well above the most popular price band are taking longer to sell.
Notes on the data
Redfin’s national figures draw from listings and sales across more than 900 U.S. metros and its weekly metrics extend back to 2021. Metro-level reporting covers the 50 largest U.S. metropolitan areas, with select metros occasionally excluded for data accuracy. Weekly results are subject to revision.
For charts and the full analysis, see Redfin’s report: Redfin: Pending Home Sales Rise as Spring Arrives.
