Changeflow GovPing Banking & Finance Pending Home Sales Index Hits 73.7, Up 1.5%
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Pending Home Sales Index Hits 73.7, Up 1.5%

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Summary

The ABA Office of the Chief Economist reported that the Pending Home Sales Index (PHSI) reached 73.7 in March 2026, a 1.5% increase from a revised 72.6 in February, exceeding market expectations of a 0.5% gain. Regional data showed strength in the Northeast (58.8, +4.4% MoM) and South (91.6, +3.9% MoM), while the Midwest (73.9, -1.3% MoM) and West (56.9, -2.6% MoM) declined. The ABA noted that increased inventory and pent-up demand are driving activity despite higher mortgage rates, though subdued turnover is expected to keep mortgage origination volumes muted for banks in the near term.

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What changed

The ABA DataBank released the March 2026 Pending Home Sales Index at 73.7, representing a 1.5% month-over-month increase and exceeding analyst expectations of 0.5%. Regional performance was mixed, with the Northeast and South posting gains while the Midwest and West declined. The index is a leading indicator of housing contract activity based on signed real estate contracts for existing single-family homes, condos, and co-ops.

For banks and mortgage lenders, the ABA notes that historically subdued turnover is likely to keep mortgage origination volumes muted in the near term despite the uptick in pending sales. This economic data release does not create any compliance obligations but provides context for financial institutions monitoring housing market conditions.

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Apr 22, 2026

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April 21, 2026 Reading Time: 1 min read The pending home sales index, or PHSI, came in at 73.7 for March, a 1.5% increase from a revised 72.6 in February, exceeding expectations of a 0.5% increase. Regionally, the Northeast was the strongest at 58.8 (+ 4.4% month-over-month), and 91.6 in the South (+3.9% MoM), compared to 73.9 in the Midwest (-1.3% MoM), 56.9 in the West (-2.6% MoM).

The PHSI is a leading indicator of housing activity and measures housing contract activity, based on signed real estate contracts for existing single-family homes, condos and co-ops. Since a home goes under contract a month or two before it is sold, the PHSI generally leads to existing home sales by a month or two. An index of 100 is equal to the average level of contract activity during 2001, at the start of a period of historically high level of home sales activity.

The ABA Office of the Chief Economist believes that the increase in pending home sales is reflective of increased inventory and pent up demand despite higher mortgage rates. For banks, historically subdued turnover is likely to keep mortgage origination volumes muted in the near term.

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Last updated

Classification

Agency
ABA
Published
April 21st, 2026
Instrument
Notice
Branch
Executive
Legal weight
Non-binding
Stage
Final
Change scope
Minor

Who this affects

Applies to
Banks
Industry sector
5221 Commercial Banking
Activity scope
Economic data reporting Mortgage origination
Geographic scope
United States US

Taxonomy

Primary area
Banking
Operational domain
Finance
Topics
Real Estate

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