Pending home sales in the United States rose 3.8% month-over-month and 4.8% year-over-year in May 2026, according to the National Association of REALTORS Pending Home Sales report. The increase reflects a late spring buyer rush despite mortgage rates remaining above 6%, indicating pent-up housing demand and consumer acceptance of current borrowing costs. The data, which tracks signed contracts for existing home sales, provides a forward-looking indicator for the housing sector.

All four major regions reported growth in both monthly and annual contract signings. The inventory-constrained Northeast region led the gains with an 8.7% monthly increase and a 6.1% annual rise. The Midwest followed with an 8.1% monthly jump and a 9.3% annual increase. The South and West saw more modest growth, with the South rising 1.0% monthly and 3.3% annually, and the West increasing 0.7% monthly and 1.2% annually.

Regional Performance

The Northeast and Midwest showed the strongest recovery in buyer activity. The Northeast, which had previously experienced faster home price growth but slower sales, demonstrated a resurgence in contract signings. The Midwest posted the highest year-over-year growth among the four regions at 9.3%.

Top Metro Markets

Among the 50 largest metropolitan areas, Kansas City, MO-KS, recorded the most significant year-over-year increase in pending home sales at 20.1%. San Antonio-New Braunfels, TX, and Minneapolis-St. Paul-Bloomington, MN-WI, followed with gains of 15.7% and 13.9%, respectively. Miami-Fort Lauderdale-West Palm Beach, FL, and Louisville/Jefferson County, KY-IN, also posted double-digit annual increases.

NAR Chief Economist Dr. Lawrence Yun attributed the activity to pent-up demand and suggested that falling oil prices could modestly lower mortgage rates in the future. However, he noted that significant government borrowing and strong AI investment spending by tech companies may limit the extent of rate declines. Yun emphasized that increased supply is necessary to help moderate home price growth.

Chief financial officers in the U.S. are accelerating technology investments despite a sharp decline in economic confidence, according to Grant Thornton's Q2 2026 CFO Survey. Only 37% of finance leaders express optimism about the U.S. economy over the next six months, marking the lowest level in the survey's 20-quarter history. Conversely, 67% expect to increase IT and digital transformation spending, highlighting a growing disconnect between investment ambition and confidence in execution.

The survey of nearly 240 finance leaders indicates that pessimists now outnumber optimists. Confidence in meeting supply chain needs fell to 43%, while fewer than half of respondents expressed confidence in meeting cost control goals. Despite these pressures, 68% of finance leaders expect profits to increase over the next 12 months, a figure only slightly down from the previous quarter.

Technology investment rises as execution risk grows

Nearly half of finance leaders, or 48%, cite technology upgrades as a top priority, an increase of 13 percentage points from last quarter. Mike Hennessey, partner in Finance Modernization at Grant Thornton Advisors LLC, emphasized the need for disciplined oversight. "CFOs need clear processes to confirm return on investment and enforce accountability," Hennessey said.

Organizations are encountering new challenges tied to the pace of AI adoption. Dana Lance, national Tax Solutions, Quality & Risk leader at Grant Thornton Advisors LLC, noted that the speed of adoption is creating pressure across controls, cybersecurity, and compliance functions. "Many organizations are not ready to operate at that pace," Lance added.

AI drives efficiency gains, but value realization remains uneven

The survey shows that 97% of organizations are piloting, scaling, or fully integrating AI into their operations. However, many are scaling AI faster than their governance, risk, and control frameworks can keep pace. While AI is improving forecasting speed and accuracy, 60% of finance leaders rank technology and AI-driven transformation among their top value creation priorities.

Mike Desmond, Audit Growth leader at Grant Thornton LLP, stated that competitive advantage requires more than back-office automation. "The leaders pulling ahead are using AI to create new revenue opportunities and build innovative ways to grow," Desmond said. He cautioned that organizations often spread themselves thin across multiple AI pilots without clear prioritization.

Economic pressure intensifies focus on cost and resilience

Finance leaders are navigating a volatile environment shaped by inflation and geopolitical disruption. Sixty-seven percent expect inflation to increase over the next 12 months, while roughly 66% report that tariffs, energy disruptions, and supply chain challenges will have at least a moderate impact on their business. In response, 67% of finance leaders report making at least moderate changes to cost and efficiency initiatives over the past 12 months.

Companies are adjusting their operating models to improve flexibility. According to the survey, 30% of finance leaders say they are using nearshoring in Latin America as part of their finance operating model to reduce supply chain risk.

M&A activity rebounds, but with tighter discipline

The survey indicates a measured recovery in deal activity, with 42% of finance leaders expecting M&A activity to increase over the next 12 months. Only 11% anticipate significant increases, reflecting a cautious approach. Paul Edwards, practice lead with Grant Thornton Stax, noted that buyers are being highly selective, prioritizing targeted acquisitions that improve efficiency or add AI-enabled capabilities rather than underwriting broad expansion.