Pending Home Sales Reach Highest Level Since 2022

The U.S. housing market is showing new signs of activity as pending home sales climbed to their highest level since September 2022.

According to a recent Redfin report, seasonally adjusted pending home sales increased 9.6% year over year during the four weeks ending May 10, 2026. The jump suggests that more buyers are returning to the market despite elevated mortgage rates and ongoing economic concerns.

Housing analysts say stronger employment conditions, improving buyer confidence, and seasonal spring demand are helping support the recent increase in home sales activity.

Buyer Demand Is Picking Up Across Most Markets

Pending home sales increased in nearly every major metro area nationwide.

Only three major U.S. metro markets saw year-over-year declines:

• Houston
• Detroit
• Seattle

The rest of the country experienced rising buyer activity, showing that demand is becoming more widespread again after a slower period for housing.

Applications for mortgage purchases also increased by roughly 4% week over week, another sign that buyers are becoming more active.

Home Prices Continue Moving Higher

As demand improves, home prices are also starting to rise more quickly again.

During the four weeks ending May 10:

• Median home sale price: $397,740
• Annual price increase: 2.2%
• Median asking price: $404,727

The 2.2% yearly increase marked the second-largest home price gain recorded over the past seven months.

Economists say increased buyer activity combined with limited inventory is helping support price growth across many housing markets.

Mortgage Rates Still Creating Challenges

Even though buyers are returning, mortgage rates remain elevated compared to previous years.

The average mortgage rate recently climbed near 6.57%, close to the highest level seen since last summer.

Higher borrowing costs continue impacting affordability for many households, especially first-time buyers.

However, mortgage rates did move lower for several consecutive weeks during April, which may have encouraged some buyers to move forward before rates potentially rise again.

Spring Housing Season Is Supporting Activity

The housing market traditionally becomes more active during the spring season, and 2026 appears to be following that pattern.

Many buyers who delayed home purchases earlier in the year are now reentering the market as:

• Employment conditions remain stable
• Recession fears ease slightly
• Inventory slowly improves
• Buyers adjust to higher rates

Housing analysts say seasonal momentum is helping drive more pending contracts nationwide.

Inventory Growth Remains Limited

Although buyer activity is improving, many homeowners are still reluctant to sell.

New listings actually declined 1.6% year over year during the latest reporting period.

Several factors continue limiting seller activity:

• Homeowners locked into very low mortgage rates
• Economic uncertainty
• Rising insurance costs
• Inflation concerns
• Ongoing geopolitical tensions

Many homeowners remain hesitant to trade low pandemic-era mortgage rates for today’s much higher borrowing costs.

Active Listings Continue Gradually Increasing

Even with fewer new listings, total active inventory has improved modestly compared to last year.

Current active listings reached nearly 1.49 million homes nationally, up 1.2% year over year.

Months of housing supply currently sits near 3.5 months.

While that still represents a relatively tight market historically, inventory conditions have improved compared to the severe shortages seen during previous years.

Some Markets Are Seeing Strong Buyer Activity

Several metro areas posted especially strong pending home sales growth.

Top markets for pending sales increases included:

• Pittsburgh
• Minneapolis
• Newark, New Jersey
• Miami
• New Brunswick, New Jersey

These markets are benefiting from stronger buyer demand, relatively stable local economies, and in some cases improved affordability compared to more expensive coastal cities.

Home Prices Rising Fast in Select Cities

Some metro areas are seeing home prices rise much faster than the national average.

The strongest annual price increases were reported in:

• Kansas City
• San Francisco
• Cincinnati
• Nassau County, New York
• Chicago

These markets continue experiencing strong buyer demand combined with limited inventory availability.

New Listings Growing in Certain Markets

While national new listings declined overall, some metro areas experienced stronger seller activity.

Markets with the largest increases in new listings included:

• Cincinnati
• West Palm Beach
• Columbus
• Milwaukee
• Newark

Housing analysts say some homeowners may be attempting to take advantage of improving buyer demand before market conditions potentially shift again later this year.

Buyer Negotiating Power May Be Shrinking

For much of the past year, the housing market strongly favored buyers because inventory improved while demand remained weak.

That advantage may now be starting to fade.

As more buyers enter the market, competition could increase again in certain areas, especially where inventory remains limited.

Economists warn that:

• Bidding wars could return in some markets
• Price growth may accelerate further
• Negotiating leverage may decline for buyers

Housing Market Still Facing Uncertainty

Even with improving sales activity, the market still faces several risks.

Higher mortgage rates, inflation concerns, and global tensions continue creating uncertainty for both buyers and sellers.

Rising oil prices and broader economic pressures are also affecting consumer confidence and household budgets.

Still, many analysts believe housing activity is stabilizing after a difficult stretch over the past two years.

Buyers Are Slowly Adjusting to Higher Rates

One major trend emerging in 2026 is that buyers appear to be adapting to the higher-rate environment.

While affordability remains challenging, many buyers no longer expect mortgage rates to quickly return to pandemic-era lows.

As a result, some households are choosing to move forward with purchases despite elevated borrowing costs.

This adjustment may be helping support the recent increase in pending home sales.

Final Thoughts

Pending home sales reached their strongest level since 2022 as buyer demand improved across most U.S. housing markets.

Stronger employment conditions, seasonal spring demand, and gradually improving confidence are helping bring more buyers back into the market despite elevated mortgage rates.

While affordability challenges and economic uncertainty remain important factors, the latest housing data suggests the market may slowly be regaining momentum heading deeper into 2026. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.