Pending home sales rise by 1.4% in April

Plus: Rocket and Redfin launch joint homebuying program with up to $20K in savings

May 20, 2026

🌅 Happy Wednesday to you, loyal reader. Have thoughts or feedback to share? [email protected]. Today's newsletter is 609 words, a 2.5-minute read.

Disclaimer: Average mortgage rates as of May 19, 2026. © MND Daily Rate Index.

1. Pending home sales rise by 1.4% in April

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

Month over month pending home sales rose in the Northeast, Midwest and West, and declined in the South. Year over year pending home sales rose in the Midwest, South and West, and declined in the Northeast.

“Buyers are coming out with cautious optimism despite increasing economic uncertainty and a slight rise in mortgage rates,” said NAR Chief Economist Dr. Lawrence Yun. “Demand will easily be even higher once mortgage rates retreat to the levels they were at earlier this year.”

2. Charted: Housing markets where home prices are falling year-over-year

Among the 300 largest metro area housing markets, 81 markets saw home prices fall year-over-year between April 2025 and April 2026

Many of the housing markets seeing the most softness, where homebuyers have gained the most leverage, are primarily located in Sun Belt regions.

Click here for an interactive version of the full list

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3. More Nuggets

⏯️ Two Harbors delays shareholder vote as fight between CrossCountry, UWM Intensifies. (NMP)

🏡 Homebuilder sentiment improves on late spring surge in demand. (CNBC)

📊 Broeksmit presses regulators on cost drivers as ‘stubbornly high’ rates persist. (HousingWire)

🏘️ New York plans tax on homes over $1 million purchased with cash. (Bloomberg)

💰 Wells Fargo agrees to $110M lending, hiring discrimination settlement. (BankingDive)

4. Rates hit 6.56% and buyers are turning to ARMs

The 30-year fixed rate rose to 6.56% last week — the highest in seven weeks — pushing total application volume down 2.3%. Purchase apps fell 4% and are now just 8% above year-ago levels. Refi apps were essentially flat, down 0.1%.

Rates have continued climbing this week, hitting the highest level since last July.

The notable shift: ARM share climbed to nearly 10% of total applications, the highest since October 2025. The average 5-year ARM rate last week was 5.76% — an 80 basis point discount to the 30-year fixed that's becoming hard to ignore for cost-conscious buyers.

"Overall applications were down to the lowest level in five weeks as purchase borrowers pulled back across conventional and government loan types," said MBA economist Joel Kan.

5. Rocket and Redfin launch joint homebuying program with up to $20K in savings

The two companies are launching a joint program that gives homebuyers up to $20,000 in combined lender credits and commission discounts when they buy, sell, and finance through Rocket and Redfin together.

New clients can save up to $12,000. Existing Rocket-serviced clients get the biggest reward — up to $20,000 — if they stay in the ecosystem when they move or buy again.

That's the real story: Rocket is using cash incentives to keep its nearly 10 million serviced borrowers from going elsewhere when they're ready to transact. In a market with little refinance activity, holding onto that relationship is everything.

☀️ You’re all caught up. See you on Friday!

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