US pending home sales rebounded in May, climbing 1.8% from the prior month and easily outpacing the 0.1% increase economists expected. The gain followed April’s 6.3% drop, lifting the National Association of Realtors’ index to 72.6 from 71.3. On a year-over-year basis, contract signings were down 0.3%, a modest improvement on April’s 3.5% decline. The stronger-than-forecast reading suggests some buyers are returning to the market despite mortgage rates that remain close to 7%. Still, activity is subdued compared with pre-pandemic norms, and economists caution that high borrowing costs and still-elevated prices continue to curb affordability. Broader indicators point to a market that is slowly loosening. Realtor.com data show active listings exceeded one million in May, the highest level since 2019, with nearly half of the 50 largest metropolitan areas now carrying more homes for sale than before the pandemic. Denver’s inventory has doubled relative to its 2017-19 average, while Austin, Seattle and Dallas–Fort Worth have each posted gains of more than 55%. Rising supply is giving buyers more bargaining power in once-hot Sun Belt markets such as Tampa and Dallas, though prices remain above year-ago levels nationally. Builders in several regions are trimming prices or offering incentives to clear excess stock, and agents report that homes are taking longer to sell, signaling a gradual normalization after the frenzied conditions of 2021-22.