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flag U.S. pending home sales rose in February 2026 due to lower mortgage rates, despite ongoing housing shortages and high costs.

flag U.S. pending home sales rose 1.8% in February 2026, defying expectations of a decline, driven by lower mortgage rates and improved affordability, according to the National Association of Realtors. flag The increase, though modest, signaled a temporary rebound amid ongoing challenges including high borrowing costs, a persistent housing shortage, and geopolitical tensions. flag Despite gains in the Midwest, South, and West, year-over-year sales declined 0.8%, and analysts warn that rising oil prices and potential rate hikes could undermine momentum. flag Home prices are forecast to rise 1.8% in 2026 and 2.5% in 2027, with mortgage rates expected to average around 6% through 2028. flag A critical shortage of homes—estimated at 1 million to 4.7 million—continues to constrain supply, with construction hampered by tariffs, labor shortages, and high costs.

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