US Pending Home Sales Jump to Nearly Three-Year High in November

Rising affordability and easing mortgage rates revive buyer confidence nationwide

The US housing market showed renewed strength in November as pending home sales climbed to their highest level in nearly three years, signaling a positive turn for buyers and sellers alike. The surge reflects improving affordability conditions and growing confidence among households who had remained cautious amid higher interest rates over the past two years.

Contracts to purchase previously owned homes recorded a strong monthly increase, comfortably outperforming market expectations. This momentum suggests that buyers are responding to a combination of moderating mortgage rates, steady wage growth, and a gradual improvement in housing supply across several regions of the country.

Housing experts point out that pending home sales are a forward-looking indicator, often translating into finalized sales within one to two months. The latest rise therefore offers an encouraging outlook for early 2026, particularly after a prolonged period of subdued activity in the resale housing market.

Affordability has been a key driver behind the rebound. Mortgage rates have edged lower since the Federal Reserve began easing monetary policy earlier in the fall, making monthly payments more manageable for prospective buyers. At the same time, income growth has continued to outpace increases in home prices, helping narrow the affordability gap that had sidelined many first-time and repeat buyers.

Another supportive factor has been the availability of inventory. While housing supply remains tight by historical standards, buyers now have more choices than they did a year ago. This modest increase in listings has reduced competition in some markets, allowing buyers to re-enter negotiations with greater confidence and flexibility.

Regionally, gains were broad-based, with pending sales rising across the Northeast, Midwest, South, and West. This nationwide improvement underscores that the recovery is not limited to a single housing market but reflects wider economic and financial conditions gradually turning more favorable for homeownership.

Market analysts also note that sentiment plays a powerful role in housing decisions. After months of uncertainty, the perception that borrowing costs may stabilize has encouraged buyers to move forward rather than wait on the sidelines. Even if mortgage rates do not fall sharply in the coming months, clarity around the rate environment can itself support market activity.

For sellers, the uptick in contracts is a welcome sign that demand is firming. Homes that are well-priced and properly marketed are attracting attention more quickly, helping restore balance to local markets that had slowed considerably. This renewed activity can also support related sectors, including construction, home improvement, and mortgage lending.

Looking ahead, economists caution that challenges remain, including affordability pressures in high-cost urban areas and uncertainty around future interest rate policy. However, the latest data suggests that the housing market has found a stronger footing as it heads into the new year.

The November rebound highlights the resilience of US housing demand and the importance of incremental improvements in financial conditions. As buyers adjust to a new normal for interest rates and prices, steady gains in affordability and supply could continue to support activity through 2026.

Overall, the rise in pending home sales marks a constructive development for the broader economy. Housing remains a critical engine of consumer confidence and wealth, and its gradual recovery adds to optimism about sustained economic stability in the months ahead.