United States Mortgage Relief Keeps Sales Positive
Why Existing Home Sales Rose in December Existing home sales climbed sharply in December as lower mortgage rates pulled sidelined buyers back into the market. The 5.1% monthly jump brought sales to a 4.35 million annual pace, the strongest reading of 2025 and the best since February 2023. That increase exceeded economist expectations by more than twofold, signaling a sudden release of delayed demand. Freddie Mac’s 30-year fixed rate fell from 6.8% in mid-2025 to about 6% by year-end. That decline, helped by federal support for mortgage bond purchases, lifted mortgage applications and refinancing activity. Buyer psychology also shifted as falling borrowing costs reduced hesitation late in the year. Even so, broader 2026 conditions still point to a stalling market rather than a crash, as high capital costs and cautious buyers continue to shape activity. Seasonal promotions from sellers and agents likely reinforced urgency, while all four regions posted monthly gains. Single-family homes...