What did pending home sales look like in December?

Signed contracts for home sales in December saw a drop in all regions of the nation compared to November, a report released today by the National Association of REALTORS® (NAR) said.

The NAR suggested the decline is a result of fewer homes listed for sale resulting in reduced inventory for buyers to choose from, despite more favorable mortgage interest rates.

“Data shows closing activity increased in December. However, new listings did not keep pace so inventory decreased,” NAR Chief Economist Lawrence Yun said.

“Consumers prefer seeing abundant inventory before making the major decision of purchasing a home,” Yun continued. “So, the decline in pending home sales could be a result of dampened consumer enthusiasm about buying a home when there are so few options listed for sale.”

December saw a 9.3% month-over-month decrease in pending home sales over all regions tracked by the NAR, while year-over-year saw a 3% decrease in three of those same regions.

Pending home sales are indicators of the direction of the housing market in general based on purchase contracts signed for homes for sale.

Which regions showed changes in pending home sales?

All four regions the NAR tracks in the U.S. showed decreases in pending sales in December from the previous month, with one region showing increases in pending home sales compared to the same time last year.

“The housing sector is not out of the woods yet,” Yun added. “After several months of encouraging signs in pending contracts and closed sales, the December new contract figures have dampened the short-term outlook.”

Things could be changing, though, as since December mortgage rates have hit a 3-year low. These lower rates could drive more potential buyers to the market and potentially raise the pending home sales for January.

Did mortgage rates show any change?

According to data from Freddie Mac, the 30-year fixed rate mortgage averaged 6.06% as of Jan. 15*. That’s down from 6.07% one week ago and also down considerably from 7.04% one year ago.

The cooler months of the winter tend to see fewer potential buyers in the market, typically allowing those shopping during this time more negotiating power. If you are looking for a deal, now may be the time to consider joining the housing market.

Are you ready to start the homebuying process? Start by applying for a mortgage pre-approval and begin your journey toward your dream home with Rate! A pre-approval shows sellers and real estate agents that you’re serious and gives you an idea of how much of a mortgage you’re likely to get approved for.

* National average rates from Freddie Mac as of Jan. 15, 2026, are not advertised rates from Rate.

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