Existing home sales end 2025 with a strong beat, as prices ease further

Core Insights - Sales of previously owned homes in December reached a seasonally-adjusted annualized rate of 4.35 million units, marking a 5.1% increase from November and exceeding analysts' expectations of a 2% gain [1] - For the full year, existing home sales totaled 4.06 million, remaining unchanged from 2024 [1] Group 1: Sales Performance - December sales represented the strongest performance in nearly three years, with increases observed across all regions month-over-month [2] - Year-over-year sales were higher in the Northeast and Midwest, while the South and West experienced declines [2] Group 2: Mortgage Rates and Market Conditions - The average rate on a 30-year fixed loan during October and November was between 6.2% and 6.3%, lower than the rates seen in the previous spring and summer, which were closer to 7% [3] - The fourth quarter of 2025 showed signs of improvement for homebuyers, attributed to lower mortgage rates and slower home price growth, despite the overall tough year marked by record-high home prices and historically low sales [4]