Pending Home Sales Dip 0.8% in January, Signaling Mixed Regional Trends

Event summary

  • Pending home sales decreased 0.8% month-over-month and 0.4% year-over-year in January 2026.
  • Regional trends varied: Midwest and West saw month-over-month increases, while Northeast and South declined.
  • Top 10 metro areas with year-over-year gains included Phoenix (+11.8%) and Boston (+10.7%).
  • NAR Chief Economist Lawrence Yun noted 5.5 million more households could qualify for mortgages at current rates.
  • House of Representatives passed the Housing for the 21st Century Act to address housing supply.

The big picture

The slight decline in pending home sales reflects broader affordability challenges despite improving mortgage rates. Regional variations highlight localized demand dynamics, while legislative efforts aim to alleviate supply pressures. The housing market's ability to absorb new buyers hinges on both policy execution and sustained affordability improvements.

What we're watching

Affordability Impact
Whether lower mortgage rates will translate into meaningful increases in homebuyer activity.
Regional Dynamics
How regional disparities in pending home sales will evolve, particularly in high-growth metro areas.
Policy Influence
The pace at which the Housing for the 21st Century Act will address housing supply constraints.