The housing market showed another sign of forward movement in April.
According to the National Association of REALTORS®, pending home sales rose 1.4% month over month and 3.2% year over year, suggesting buyers are still active despite affordability pressure and elevated mortgage rates. At the same time, Fannie Mae’s latest forecast points to a market that should continue improving gradually through 2026 and into 2027.
Fannie Mae expects the average 30-year fixed mortgage rate to come in around 6.3% in 2026, down modestly from 6.6% in 2025. Total home sales are projected to rise from 4.755 million in 2025 to 4.853 million in 2026, then to 5.181 million in 2027.
Taken together, the data points to a market that is not overheated, but is becoming more active and more balanced.
Carmen Williams, Vice President of RJ Williams & Co., said that is exactly what the firm is seeing in the field.
“Month over month, we have seen a continual progression in market movement, with buyers getting off the sidelines and sellers adjusting to the new market. It is truly a more balanced market that encourages negotiation and requires strength as an agent to make sure you are always looking out for your clients’ best interests, and most importantly, their pocketbook, whether they are buying or selling. At RJ Williams & Co., we believe that if you take care of people, people will take care of you. That is our mantra, and that is how we live.”
For buyers, this kind of market can create more opportunity. Pending sales growth suggests people are still making moves, and a slightly better rate environment could help support more activity. For sellers, the market still offers demand, but pricing and strategy matter more than they did in a more aggressive seller-driven environment.
Fannie Mae also expects home prices to continue rising at a moderate pace, while inventory improves only gradually. New construction is not expected to surge, which means supply will likely remain tight enough to keep pressure on the market in many areas.
The bigger takeaway is simple: housing is moving in a healthier direction, but the recovery is measured. Rates remain high by historical standards, affordability is still a challenge, and buyers are more payment-sensitive than they were in prior cycles. Even so, the latest data suggests the market is finding a better balance.
- Pending home sales rose 1.4% in April
- Pending sales were up 3.2% year over year
- Fannie Mae projects 30-year mortgage rates averaging 6.3% in 2026
- Total home sales are expected to increase in 2026 and 2027
- Inventory may improve, but supply constraints are still likely to limit the pace of recovery