What did existing home sales look like in January?

Sales of existing homes decreased in all four regions across the nation in January compared to the previous month, a report released today by the National Association of Realtors (NAR) said.

Existing home sales, which the NAR defines as completed transactions for properties that include single-family homes, townhomes, condominiums and co-ops, decreased as much as 8.4% from December and 4.4% from the same time last year.

Total homes for sale at the end of January were 1.22 million units, down 0.8% from December but up 3.4% from January 2024. With more options on the market, potential buyers have a better chance to search for their dream home than they did last year.

"The below-normal temperatures and above-normal precipitation this January make it harder than usual to assess the underlying driver of the decrease and determine if this month’s numbers are an aberration,” NAR Chief Economist Lawrence Yun said.

Which regions showed changes in pending home sales?

All four regions the NAR tracks in the U.S. showed decreases in sales of existing homes in January compared to the previous month, the NAR said.

The decrease in sales is despite factors pointing to it being a great time for homebuyers.

"Affordability conditions are improving, with NAR’s Housing Affordability Index showing that housing is the most affordable it’s been since March 2022,” Yun said. “This is due to wage gains outpacing home price growth and mortgage rates being lower than a year ago.”

Winter typically sees a drop in existing home prices. On top of that, mortgage rates have seen a steady decline since May, which has improved conditions for potential buyers joining the housing market.

Did mortgage rates show any change?

According to data from Freddie Mac, the 30-year fixed rate mortgage averaged 6.11% as of Feb. 5. That’s up from 6.10% one week before but down significantly from 6.89% one year ago.

A continued reduction in mortgage interest rates will likely be a welcome sign to prospective homebuyers. A decrease in mortgage rates could also signal a continuing thaw in the housing market as we dive deeper into the new year and emerge from winter’s chill.

Are you ready to start seeing the benefits of homeownership? Apply 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 Feb. 5, 2026, are not advertised rates from Rate.

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