Market News May 22

Market Updates

Today's Market News:

Pending Home Sales Rise in Three Out Of Four Regions


Pending home sales in April increased by 1.4% month-over-month and rose 3.2% annually, according to the National Association of REALTORS® Pending Home Sales report.

The Northeast region saw a 6.6% increase month-over-month, but a 0.6% annual decrease in pending home sales.

The Midwest came in first, with a 3.0% increase in month-over-month pending sales and a 2.7% increase year-over-year.

The South region saw a 0.7% decrease month-over-month, but a 4.7% annual increase.

Pending home sales in the West rose 0.4% month-over-month, rising 3.8% year-over-year.

At the local level, several markets posted notable year-over-year gains in pending home sales. Here are the top five:

  1. Boston-Cambridge-Newton, MA-NH (+10.3%)
  2. Miami-Fort Lauderdale-West Palm Beach, FL (+9.4%)
  3. Oklahoma City, OK (+8.6%)
  4. Milwaukee-Waukesha, WI (+7.4%)
  5. Virginia Beach-Chesapeake-Norfolk, VA-NC (+7.2%)1

Why A "Coming Soon" Campaign for Sellers Is Important


Recent surveys have discovered some intriguing facts about today's homeowners. For example, those who are considering selling often mention that a move to a new area would improve their quality of life. But many of them feel stuck in place. 58% say moving feels riskier than staying put, 49% feel financially locked into their current home and 42% say moving would hurt them financially.

However, you may be able to help these sellers by suggesting that they test the waters with a Coming Soon listing before they officially put their homes on the market. More than 80% of prospective sellers who responded to a recent Redfin survey said they're interested in the Coming Soon approach. They also said that if they felt more certain that their home would sell, they would be more likely to proceed with listing it.

These responses are from an online quantitative survey of 1,000 homeowners conducted by Redfin in April 2026. The sample included homeowners who plan to sell their home at some point, and do not currently have their home listed or under contract/in transaction.2

Mortgage Interest Rates Highest Since July 2025


The average rate on the 30-year fixed loan rose 7 basis points Tuesday to 6.75% as concerns over the Iran conflict increased. This rate is the highest since July 31st, 2025.

This changes housing affordability math for potential buyers. For a buyer putting 20% down on a $420,000 home — roughly the national median home price — their principal and interest payments have gone up from $2,012 to $2,179, a difference of $167 each month.

However, some buyers are still active as the sales of pending homes rose in three out of four regions last month. NAR's chief economist Lawrence Yun predicted: "Demand will easily be even higher once mortgage rates retreat to the levels they were at earlier this year."3

Builder Sentiment Improves Slightly


Even though potential buyers are faced with rising rates and economic uncertainty, builder confidence posted a modest gain this month according to the NAHB/Wells Fargo Housing Market Index, or HMI.

Confidence in the market for newly built single-family homes increased three points to 37, while future sales confidence increased three points to 45. The index that charts prospective buyer traffic also posted a three-point gain, rising to 25.

Looking at the three-month moving averages for regional HMI scores, the Midwest registered a one-point gain to 43, the Northeast rose one point to 42, the South held constant at 35 and the West fell one point to 28.

While many HMI scores are rising, all are still under 50, which is the minimum score for an index where builders view conditions as good rather than poor.

If you're working with one or more builders, you may be interested in their current pricing strategies. The latest HMI survey also revealed that 32% of builders cut prices in May while the average price reduction was 6%. Builders are also using more sales incentives — this percentage rose to 61% this month, up slightly from 60% in April.4

The Creative Capital Tops Zillow's Summer Rental List

If you work with clients who are shopping for additional rental properties, you may want to share these findings.

Providence, Rhode Island is turning up the heat this summer, edging out New York and San Francisco for the No. 1 spot on Zillow's hottest rental markets list. Providence — also known as The Creative Capital — provides visitors with a variety of things to see and do, often at a lower price than many other popular destinations.

Zillow's top 10 hottest rental markets for summer 2026:
  1. Providence
  2. New York
  3. San Francisco
  4. Hartford
  5. Los Angeles
  6. Chicago
  7. Boston
  8. Milwaukee
  9. Virginia Beach
  10. San Jose
Senior Economist Kara Ng explained the results: "In Zillow's hottest rental markets, the math is simple: More people want to live there than there are homes to rent — whether for access to amenities, strong job markets or family ties, renters are competing over a limited supply."5

Sources: 1nar.realtor, 2redfin.com, 3cnbc.com, 4eyeonhousing.org, 5zillow.mediaroom.com