US Pending Home Rise More than Expected

US pending home sales fell 0.8% month over month in January 2026, extending a revised 7.4% decline in December and missing expectations for a 1.3% increase. The second consecutive monthly drop highlights ongoing pressure in the US housing market, despite lower mortgage rates. Regionally, sales fell in the Northeast (-5.7%) and South (-4.5%), while the Midwest (5.0%) and West (4.3%) saw gains. On a year-over-year basis, pending home sales were down 0.4%. “Improving affordability conditions have yet to induce more buying activity,” said Lawrence Yun, Chief Economist at the National Association of Realtors. “With mortgage rates nearing 6%, an additional 5.5 million households that could not qualify for a mortgage one year ago would qualify at today’s lower rates.” Yun also warned that without an increase in housing supply, new buyers entering the market could push prices even higher, intensifying affordability pressures and highlighting the urgent need for more home construction.

US pending home sales fell sharply by 9.3% month over month in December 2025, the biggest drop since April 2020, reversing a 3.3% increase in November and far exceeding market expectations for a modest 0.3% decline. The decline ended a four-month streak of gains and marked the steepest drop since April 2020, when the pandemic first hit demand, underscoring that the US housing market remains under pressure. Declines were recorded across all four regions, led by the Midwest (-14.9%) and the West (-13.3%), followed by the Northeast (-11.0%) and the South (-4.0%). On a year-over-year basis, pending home sales were down 3.0%. Commenting on the data, NAR Chief Economist Lawrence Yun said that although home closings rose in December, new listings did not keep up, pushing inventory lower. With fewer homes available, buyers were less willing to commit, likely contributing to the drop in pending home sales.

US pending home sales rose by 3.3% from the previous month in November of 2025, picking up from the upwardly revised 2.4% increase from October and ahead of expectations of a 1% gain, to reflect a fourth consecutive increase in pending home sales. Growth was consistent in all areas of the country, including the West (9.2%), the South (2.4%), the Northeast (1.8%), and the Midwest (1.3%). "Homebuyer momentum is building. The data shows the strongest performance of the year after accounting for seasonal factors, and the best performance in nearly three years, dating back to February 2023," said NAR Chief Economist Lawrence Yun. "Improving housing affordability–driven by lower mortgage rates and wage growth rising faster than home prices–is helping buyers test the market. More inventory choices compared to last year are also attracting more buyers to the market."