Pending home sales increased 4.6 percent year-over-year in March, marking the strongest annual growth rate for the month in five years, according to Zillow's March Market Report. The growth occurred despite mortgage rates climbing nearly half a percentage point during the period.
The spring housing market demonstrated unexpected resilience as buyers remained active even with deteriorating affordability conditions. The 4.6 percent annual increase in pending sales suggests pent-up demand may be overriding typical rate sensitivity among homebuyers.