quick read
According to Zillow’s March Market Report, pending home sales in March increased 4.6% year-over-year and 29.8% month-over-month, the largest increase in five years. Although mortgage rates rose from 5.98 percent to 6.38 percent in late March and the typical monthly payment increased to $1,789, Zillow noted that page views per property for sale increased 32 percent year over year. The median U.S. home price in March was $365,545, up 0.8% from a year ago, and inventory increased 4.2%, marking the 28th consecutive month of annual increases. NAR Chief Economist Lawrence Yun lowered his 2026 home sales forecast after home interest rates exceeded 6%, a threshold that affects buyer affordability, despite initial expectations that sales rates would increase by 14%.
This summary was generated by an AI tool based on the article text and checked by an editor.
Pending sales rose 4.6% annually, the strongest pace in five years, even as mortgage rates rose nearly half a percentage point, according to Zillow’s March market report.
Pending home sales in March saw the largest increase in pending home sales in five years, despite rising mortgage rates, according to Zillow’s March market report released Monday.
The number of new pending listings increased 4.6% year-on-year, reaching the second highest monthly total since August 2022, when the post-pandemic market downturn began. The 29.8% increase from the previous month was the highest level for March in five years.
Interest rates rise, but buyers keep shopping
Mortgage interest rates rose from 5.98% at the end of February to 6.38% in late March, and the standard monthly mortgage payment, excluding taxes and insurance, rose 1.5% from February to $1,789, according to Freddie Mac. Despite that pressure, Zillow’s average daily pageviews per sales listing increased 32% over the previous year.
Mischa Fisher |Credit: LinkedIn
“There are persistent signals that the market has turned a corner,” said Misha Fischer, chief economist at Zillow, citing pent-up demand, tailwinds from prior year interest rates and weather disruptions in January and February as factors supporting the spring market.
Values rise, inventory increases for 28 consecutive months
The typical U.S. home price reached $365,545 in March, up 0.8% from the same month last year and slightly accelerating from February’s 0.4% annual increase. Inventory increased at an annual rate of 4.2%, marking the 28th consecutive month of year-on-year increases, while the number of new listings was almost flat, increasing by 0.1%.
Lawrence Yun | Chief Economist, National Association of Realtors
The median time it took for a housing application to be put on hold was 19 days, two days longer than a year ago but nine days earlier than in February.
It remains to be seen whether the momentum from March will continue into spring. Lawrence Yun, chief economist at the National Association of Realtors, told Inman last week that he was revising his forecast downward because interest rates spiked after the U.S.-Israeli military operation in Iran and borrowing costs exceeded the 6% threshold he recognizes as important for affordability for buyers.
Yun previously predicted that home sales would increase by 14% in 2026.
Zillow’s April market report will be released on May 6th.
Email Jesse Healy
