Executive Summary: Market Recovery in Progress

The U.S. real estate market is showing clear signs of recovery across multiple sectors as of May 7, 2026. The spring housing market has regained momentum with pending home sales reaching their highest level since late 2022, jumping 7.7% year-over-year . Mortgage rates have stabilized near 6.44% after earlier volatility, providing buyers with more predictability . Housing affordability has improved modestly for the first time since 2020, with median monthly payments down 8.4% year-over-year as rates eased and incomes rose . Commercial and multifamily lending surged 52% year-over-year in Q1 2026, driven by a wave of maturing loans requiring refinancing . However, challenges persist in the office sector where vacancy rates remain elevated at 20% nationally due to persistent hybrid work patterns .  ...