Homebuyers are back despite rising rates — What to know

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An "Open House" sign outside a home in Palm Beach Gardens, Florida, US, on Sunday, Jan. 11, 2026. Photographer: Zak Bennnett/Bloomberg via Getty Images

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Homebuying picked up in March as strong demand drove a spring rebound, even with rising mortgage rates, according to Zillow. 

By the numbers:

Rising energy prices added to the uncertainty facing buyers in March, while mortgage rates climbed from 5.98% at the end of February to 6.38% by late March, according to Freddie Mac. That increase eroded earlier affordability gains, pushing the typical mortgage payment up 1.5% from February, excluding taxes and insurance.

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Despite those headwinds, demand remained strong. Average daily views per listing on Zillow were 32% higher than a year ago, signaling that buyer interest is beginning to outpace inventory growth for the first time since the pandemic.

Impacts of a 50-year mortgage for homebuyers

President Donald Trump has mentioned a new plan to develop a 50-year mortgage that officials say could expand access to homeownership, though some experts are worried that longer-term mortgages could hamstring homebuyers. LiveNOW’s Andy Mac is learning more about how the proposal could impact homebuyers with Jason Mitchell, a real estate broker and the founder of the Jason Mitchell Group.

Newly pending sales reached 281,546 in March — the second-highest level since August 2022 — with a 4.6% annual increase and a 29.8% jump from February, both the strongest March gains in five years.

Home values continued to edge higher, rising 0.8% year over year, up from 0.4% growth in February. Inventory increased annually for the 28th straight month, while new listings were essentially flat, up 0.1% from a year earlier — an improvement after declines in January and February.

Other key takeaways: 

Home Values & Mortgage Payments

• The typical U.S. home value is $365,545.
• Home values rose 0.6% from February to March and are up 0.8% from a year ago.
• The typical monthly mortgage payment is $1,789 (20% down, excluding taxes and insurance), down 4.4% year over year.

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Inventory

• There were 1.23 million homes for sale in March.
• Inventory increased 4.2% compared to last year and 9.5% from February.
• New listings totaled 384,854, up 0.1% year over year and 35.6% month over month.

Sales

• Newly pending listings rose 4.6% from a year ago and 29.8% from February.
• An estimated 300,398 homes were sold in March, up 3.7% year over year and 25.2% from the prior month (figures subject to revision).

Competition

• Homes took a median of 19 days to go pending, two days longer than last year but nine days faster than February.
• 22.6% of listings had a price cut, down 0.8 percentage points from last year and up 2.4 points from February.

Rents

• The typical rent is $1,910, up 1.8% year over year and 0.6% from February.
• 39.8% of rental listings offered concessions, flat from last year and up 0.6 percentage points from February.