What did pending home sales look like in February?

Signed contracts for homes for sale in February increased in three of four regions of the nation compared to January, a report released today by the National Association of REALTORS® (NAR) said.

“The slight gain in pending contracts appears to be driven by improved affordability conditions,” NAR Chief Economist Lawrence Yun said. “The Midwest — the most affordable region of the country — was the strongest performer in February. But the Northeast was held back by a combination of higher home prices and a shortage of supply.”

February saw a 1.8% month-over-month increase in pending home sales over all regions tracked by the NAR, while year-over-year saw an overall 0.8% decrease in those same regions.

Pending home sales are indicators of the direction of the housing market in general based on purchase contracts signed for homes for sale.

Which regions showed changes in pending home sales?

Three of the four regions the NAR tracks in the U.S. showed an increase in pending sales in February from the previous month, with two regions showing increases in pending home sales compared to the same time last year.

“For first-time homebuyers, purchasing a home is not a snap decision,” Yun said. “It takes time to build credit, save for a down payment and fulfill existing rental lease agreements. Still, there is sizable pent-up demand that could be released into the market.”

Things could be changing, though, as since December mortgage rates have hit a three-year low. These lower rates could drive more potential buyers to the market and potentially raise the number of pending home sales as we continue through the remaining winter months and head into spring.

Did mortgage rates show any change?

According to data from Freddie Mac, the 30-year fixed rate mortgage averaged 6.11% as of March 12*. That’s up from 6% one week ago but down considerably from 6.65% one year ago. 

The cooler months of the winter tend to see fewer potential buyers in the market, typically allowing those shopping during this time more negotiating power. If you are looking for a deal, now may be the time to consider joining the housing market.

Are you ready to start the homebuying process? Start by applying for a mortgage pre-approval and begin your journey toward your dream home with Rate! A pre-approval shows sellers and real estate agents that you’re serious and gives you an idea of how much of a mortgage you’re likely to be approved for.

* National average rates from Freddie Mac as of March 12, 2026, are not advertised rates from Rate.

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