What did pending home sales look like in January?

Signed contracts for homes for sale in January saw an increase in two of the four regions of the nation compared to December, a report released today by the National Association of REALTORS® (NAR) said.

Due in part to mortgage rates dropping, many potential new buyers are able to afford and qualify for a home mortgage. However, the NAR believes new borrowers tend to wait before joining the housing market.

“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,” NAR Chief Economist Lawrence Yun said. “Most newly qualifying households do not act immediately, but based on past experience, about 10% could enter the market — potentially adding roughly 550,000 new homebuyers this year compared with last year.”

January saw a 0.8% month-over-month decrease in pending home sales over all regions tracked by the NAR, while year-over-year saw an overall 0.4% decrease in 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?

Two of the four regions the NAR tracks in the U.S. showed an increase in pending sales in January from the previous month, with two regions showing increases in pending home sales compared to the same time last year.

Things could be changing, though, as of December mortgage rates have hit a 3-year low. These lower rates could drive more potential buyers to the market and potentially raise the number of pending home sales as we continue through the start of the year and head into spring.

Did mortgage rates show any change?

According to data from Freddie Mac, the 30-year fixed rate mortgage averaged 6.09% as of Feb. 12*. That’s down from 6.11% one week ago and also down considerably from 6.87% 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 begin 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 Feb. 12, 2026, are not advertised rates from Rate.

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