US Pending Home Sales Decline

- The national figures mask significant regional differences; contract signings rose month-over-month in the Midwest and West but fell in the Northeast and South. Annually, the South and West saw gains, while the Northeast and Midwest experienced declines. - According to NAR Chief Economist Lawrence Yun, improving affordability has not yet translated into more buying activity. He notes that while lower mortgage rates have allowed 5.5 million more households to qualify for a mortgage compared to a year ago, this could drive prices higher without an increase in housing supply. - The average 30-year fixed-rate mortgage stood at 6.09% as of February 12, 2026. This is a notable decrease from the 6.87% average seen a year prior, a key factor in improving housing affordability. - Total housing inventory was 3.4% higher at the end of January compared to the previous year, offering more options for buyers. However, the overall recovery of the nation's housing inventory has stalled and remains below pre-pandemic levels. - The dip in pending contracts, which are a forward-looking indicator, was preceded by a sharp 8.4% month-over-month drop in existing-home sales in January—the steepest decline in nearly four years. - Despite low inventory, the median existing-home price saw only a slight year-over-year increase of 0.9% in January to $396,800, indicating a significant cooling in price growth. - NAR's Housing Affordability Index indicates that housing is the most affordable it has been since March 2022, a result of wage gains outpacing the growth in home prices combined with lower mortgage rates. - Several individual metro areas saw strong year-over-year gains in contract signings, bucking the national trend, including Phoenix (up 11.8%), Boston (10.7%), and Miami (6.8%).