Pending home sales rose 2.7 percent year-over-year during the four weeks ending April 26, the biggest increase in six weeks, according to a report from Redfin. Mortgage-purchase applications have risen to their highest level in three months.
There are a few reasons more homebuyers are on the hunt:
- Affordability is improving. The weekly average mortgage rate has dropped to 6.23 percent from a seven-month high of 6.46 percent at the start of April, pushing the median monthly housing payment down 2.2 percent year-over-year.
- Markets have started to stabilize. At the same time, some sidelined house hunters are encouraged because markets—and mortgage rates—have steadied as the Iran war fades a bit from the headlines. The timing of Easter is also contributing to the year-over-year uptick in pending sales; Easter didn’t fall into this four-week period, but it was in 2025’s comparable period.
Sellers are coming out of the woodwork as they notice demand from buyers creeping up. New listings rose 2.2 percent year-over-year, the second week of increases after five straight months of declines. It’s also prime home-selling season, when homes are more likely to sell above their asking price, and to sell faster.
“Even though more buyers are coming off the sidelines, some are still wondering if they should wait for mortgage rates to fall more before making a move. I tell them no — if you love a home and you can afford it, make an offer,” Sue Dhillon, a Redfin Premier agent in Seattle, said in a release. “It is a buyer’s market, but there is competition for desirable homes in popular neighborhoods. And while prices are lower than they have been over the past few years, they will rise quickly if bidding wars do pick up.”