Early Signals: US Home Sales Begin to Recover
Sales of existing US homes under contract rose for the third straight month in April, signaling housing demand is starting to find its footing at the start of the spring buying season. The contract signings index rose 1.4% to 74.8, a five-month high, exceeding the median economist estimate of 1%.
This National Association of Realtors (NAR) data shows the housing market has begun to recover from gradual improvements in affordability since mid-2025. However, pressure remains for lower-income buyers, as mortgage rates and asking prices remain high.
NAR Chief Economist Lawrence Yun said buyers are returning with “cautious optimism” amid economic uncertainty and a slight increase in mortgage rates. At the end of March, the 30-year fixed mortgage rate rose to 6.57%, the highest since August. Financing costs eased slightly in April, but remain higher than before the Iran war broke out in late February.
Regionally, sales contracts rose in three of the four US regions, while the South—the largest housing market—actually declined after posting solid gains in the previous two months. Because homes typically go into contract one to two months before a final transaction, pending home sales serve as a leading indicator of existing home sales, as reported in the monthly report.
Market implications: Strengthening pending sales indicates that domestic demand has not weakened significantly, but sensitivity to interest rates remains high. Investors will monitor whether this trend continues through the direction of mortgage rates, home price dynamics, and confirmation from subsequent existing home sales data, which previously only slightly increased from a nine-month low. (arl)*
Source: Newsmaker.id
