December Existing-Home Sales Hit Highest in Nearly 3 Years as Mortgage Rates Ease

01:29 PM EST, 01/14/2026 (MT Newswires) -- Existing home sales in the US rose to the highest in nearly three years in December amid lower mortgage rates, data from the National Association of Realtors showed Wednesday.

Sales increased 5.1% sequentially to a seasonally adjusted annual rate of 4.35 million units last month. The consensus was for a 2.2% rise to 4.22 million units in a survey compiled by Bloomberg. Sales climbed for the fourth consecutive month and were up 1.4% from a year earlier, NAR data showed.

"December home sales, after adjusting for seasonal factors, were the strongest in nearly three years," NAR Chief Economist Lawrence Yun said in a statement.

Full-year 2025 sales averaged 4.06 million units, the same as in 2024 and below 4.09 million sales in 2023.

"(It) was another tough year for homebuyers, marked by record-high home prices and historically low home sales," Yun said in a statement. "However, in the fourth quarter, conditions began improving, with lower mortgage rates and slower home price growth."

The average 30-year fixed mortgage rate was 6.19% in December, down from 6.24% in November and 6.72% a year earlier, NAR said, citing Freddie Mac data.

Sales of single-family homes increased 5.1% month over month to 3.95 million units in December, while condominium and co-op sales rose 5.3% to 400,000 units, NAR data showed. The supply of homes fell 18% in December from the month prior to 1.18 million units, but was up 3.5% year over year, the group said.

"We believe the positive momentum observed in the second half of 2025 will extend to 2026, with sales to push 'gradually' higher on the back of an improving labor market backdrop and a bit more easing on mortgage rates," Admir Kolaj, economist at TD Economics, said in a report. "Supply remains a (constraint) to a stronger rebound."

Last week, President Donald Trump said he was taking steps to ban large institutional investors from buying single-family homes in a bid to make homeownership affordable.

"The fact that the US administration is now considering several measures to help prop up housing affordability reinforces the positive outlook for 2026, while also highlighting added upside potential," Kolaj said.

However, those measures are largely focused on the demand side, according to Kolaj.

"There's the potential that, without adequately addressing the supply-side of the equation, the near-term demand jolt from these policies could raise prices more than otherwise would be the case, leading to a later erosion in affordability," Kolaj said.

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