Pending home sales drop sharply in December, dampening 2026 outlook

Core Insights - The housing market is facing challenges with stagnant mortgage rates, declining housing supply, and economic uncertainty impacting homebuyers [1][2] - Pending home sales fell by 9.3% in December compared to November, contrary to analysts' expectations for a slight gain, and were down 3% from December 2024 [1] - The average time homes spent on the market increased to 39 days in December, up from 35 days in December 2024 [2] Mortgage Rates - Mortgage rates remained stable in December, with the average rate for a 30-year fixed loan around 6.25%, slightly lower than summer levels [3] Regional Sales Trends - Home sales declined month-to-month across all U.S. regions, with only the South showing an annual increase in sales [2]