The number of homes that went under contract in March rose 4.6% year over year, according to Zillow. That jump comes even as mortgage rates rose steadily amid new fears about oil prices and inflation. Rates started the month below 6%, a multiyear low, but were at 6.38% by month-end, per Freddie Mac data.
Deals under contract can fall through before a sale is actually recorded. Still, there are other signs that the housing market is perking up. Active inventory was up 4.2% from a year earlier, meaning sellers are willing to test the waters and buyers have more options.
March’s data is a preliminary sign that buyers and sellers are finally returning to the market. At the beginning of the year, many economists were hopeful that the housing market would finally begin to normalize after three straight years of sales near multidecade lows, but the sudden uptick in mortgage rates in recent weeks has clouded that outlook.
Claire Boston is a senior reporter for Yahoo Finance covering housing, mortgages, and home insurance.
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