More Americans signed contracts to buy homes in May, defying stubbornly high mortgage rates that previously threatened to stall the housing market. Pending home sales ticked up 3.8% from April, marking a 4.8% increase compared to the same time last year, according to data released Wednesday by the National Association of REALTORS® (NAR).
The unexpected spring surge spread across every major region of the country. Contract signings grew most aggressively in the Northeast and Midwest, while the South and West posted more modest, steady gains.
NAR Chief Economist Dr. Lawrence Yun noted that buyers seem to be adjusting to the current financial climate rather than waiting for rates to drop.
“A late spring buyer rush—even with mortgage rates not budging—is an indication of pent-up housing demand and consumers’ acceptance of above-6% mortgage rates as the new normal,” Yun said. “The inventory-constrained Northeast region, which has seen faster home price growth but slower home sales for several months, is now showing more buyer contract signings. More supply is needed to help moderate home price growth.”
The regional breakdown highlights distinct pockets of high activity, with the Midwest leading annual growth and the Northeast topping the monthly numbers:
| Region | Month-Over-Month Change | Year-Over-Year Change |
| Northeast | +8.7% | +6.1% |
| Midwest | +8.1% | +9.3% |
| South | +1.0% | +3.3% |
| West | +0.7% | +1.2% |
At the local level, several metropolitan areas saw even bigger moves. Data from Realtor.com® Economics revealed that Kansas City led the nation’s 50 largest metros with a 20.1% year-over-year spike in contract signings. San Antonio-New Braunfels, Texas, followed with a 15.7% increase, and the Minneapolis-St. Paul area registered a 13.9% gain. Other markets rounding out the top ten annual increases included Miami, Louisville, Cincinnati, Nashville, Milwaukee, Virginia Beach, and Richmond.
Looking ahead, Yun suggested that broader economic forces will play a role in where mortgage rates go next, though drastic drops are unlikely.
“Going forward, falling oil prices will help lower mortgage rates,” Yun said. “But declines will be modest given sizable borrowing by the federal government and strong AI investment spending by tech companies.”
A sale is listed as pending when a contract has been signed but the transaction has not officially closed. Because these deals usually finalize within one or two months, the figures serve as a reliable early indicator for future existing-home sales.
However, the time between a signed contract and a final closing can vary due to potential disruptions, such as buyers facing issues securing financing, unexpected home inspection problems, or appraisal hurdles.
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