Pending home sales climbed to their highest level in nearly four years during the four weeks ending May 3, according to a new report from Redfin, offering mortgage originators another sign that buyers are re-engaging when rates ease, even temporarily.
Redfin reported that seasonally adjusted pending home sales increased 7.7% year over year during the period, marking the strongest level since 2022. The company said the improvement came as mortgage rates declined in late April before moving higher again in early May.
The average 30-year fixed mortgage rate fell to 6.23% in late April, according to Redfin, helping improve affordability during the heart of the spring buying season. Rates have since moved higher again amid broader market volatility.
For LOs, the data suggests that affordability remains the key driver of purchase demand in 2026, with buyers responding quickly to even modest rate relief.
Redfin also reported that active listings continued to rise from year-ago levels, giving buyers more options than they had during much of the past two years. At the same time, the median monthly housing payment declined slightly year over year during the reporting period.
The report reflects a broader trend seen across recent housing-market data, where inventory conditions have gradually improved while buyers remain highly payment-sensitive as mortgage rates fluctuate.
At the metro level, Redfin said price trends varied significantly across the country. Some Midwest and Northeast markets continued posting stronger annual price growth, while several West Coast and Sun Belt metros experienced softer pricing conditions.
While pending sales improved, Redfin noted that mortgage rates have already started moving higher again, underscoring how quickly shifts in borrowing costs can affect buyer demand and purchase momentum.
