The U.S. housing market is showing fresh signs of life heading into summer, with pending home sales climbing to their highest level in nearly four years as buyers slowly regain confidence despite elevated mortgage rates.
New data from Redfin shows pending home sales jumped 9.6% year over year during the four weeks ending May 10, marking the strongest level since September 2022. The increase comes as mortgage-purchase applications, home tours, and online searches for homes all continue trending upward.
The rebound suggests many buyers who spent the last two years waiting on the sidelines are beginning to move forward, even with mortgage rates still hovering above 6%. Redfin economists said improving job-market conditions, slightly lower borrowing costs earlier this spring, and typical seasonal demand are all helping fuel renewed activity.
At the same time, the market may be shifting away from the buyer-friendly conditions that dominated much of the last year. While active listings remain relatively high, new listings have started falling. Redfin reported new listings declined 1.6% year over year, marking the third consecutive weekly drop.
That imbalance between rising demand and fewer fresh listings is beginning to push prices higher again.
The national median home-sale price rose 2.2% from a year ago to nearly $398,000, one of the strongest annual increases seen in the last seven months. The median asking price topped $404,000.
Housing economists say some homeowners are delaying listing their properties in hopes prices rise further later this year. Others remain reluctant to give up historically low mortgage rates they secured during the pandemic-era housing boom.
The result is a market where buyers still hold some leverage, but perhaps not for much longer.
Redfin Head of Economics Research Chen Zhao said increasing buyer competition could quickly reduce negotiating power for shoppers who continue waiting on the sidelines.
Nationwide, homes are spending a median of 42 days on the market, three days longer than last year. Roughly 27% of homes sold above asking price during the latest reporting period, while the average sale-to-list ratio came in at 98.8%.
Several Northeast metros posted some of the strongest gains in pending sales activity, including Newark and New Brunswick, New Jersey. Nassau County on Long Island also saw one of the nation’s larger year-over-year price increases at 5.2%.
Meanwhile, some previously overheated Sun Belt markets continue cooling. Cities including Austin, Miami, Seattle, and Sacramento all posted annual price declines, while Denver and Dallas saw steep drops in new listings.
The latest numbers add to growing evidence that the 2026 housing market may be stabilizing after several volatile years defined by surging mortgage rates, low inventory, and affordability concerns. But affordability remains a major hurdle for many Americans, with the median monthly mortgage payment still sitting above $2,600 nationally.
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