Pending Home Sales Jump to Near Three-Year High

Are homebuyers shaking off their hesitation? New data suggests they’re at least dipping a toe back in the market.

Pending home sales climbed 3.3 percent in November from the previous month and were up 2.6 percent year over year, according to a report from the National Association of Realtors. The increase marked the strongest seasonally adjusted showing in nearly three years, dating back to early 2023, as falling mortgage rates coaxed more buyers into signing contracts.

The rebound followed a steady slide in borrowing costs this fall. The 30-year fixed-rate mortgage averaged 6.24 percent in November, down from peaks of over 7 percent earlier this year, according to Freddie Mac. Lower rates have already helped drive three straight months of gains in existing-home sales, adding momentum to what had been a sluggish housing market.

Regionally, the comeback was uneven but broad. The West posted the biggest month-over-month gain, with pending sales surging to 9.2 percent in November. The South followed with a 2.4 percent increase, while the Northeast and Midwest logged more modest gains of 1.8 percent and 1.3 percent, respectively. That marked a shift from October, when the Midwest led the country with a 5.3 percent jump.

NAR chief economist Lawrence Yun pointed to improving affordability as the key driver. Lower mortgage rates, wage growth outpacing home prices and a larger pool of listings compared to last year are all helping buyers test the waters, he said.

Inventory did tighten heading into winter: active listings were down 6 percent from October, but supply remains about 8 percent higher than a year ago.

Prices, however, are still moving higher. The median existing-home price reached $409,200 in November, even as monthly mortgage payments fell from their summer peak. Mortgage application data shows buyers are paying close attention: applications for home purchases have posted double-digit annual gains in recent weeks.

In markets like Florida, agents are starting to see buyers return as rates ease.

Still, the recovery remains sensitive to borrowing costs. NAR forecasts that mortgage rates could average around 6 percent in 2026, down from roughly 7 percent at the start of this year. That single percentage-point drop could pull millions of additional households, including renters, into the buyer pool, according to the group.

For now, the data suggests the housing market’s long freeze may finally be starting to thaw, provided rates don’t spike again.