Pending home sales in the United States fell 4.6% in January 2025 from the previous month, following an upwardly revised 4.1% decline in December 2024. This drop pushed the index to a record low of 70.6, significantly worse than market expectations of a 1.3% decline.

Sales plunged 9.2% in the South, fell 2% in the Midwest and went down 1.2% in the West but rose 0.3% in the Northeast.

"It is unclear if the coldest January in 25 years contributed to fewer buyers in the market, and if so, expect greater sales activity in upcoming months. However, it's evident that elevated home prices and higher mortgage rates strained affordability. Even a slight reduction in mortgage rates will likely ignite buyer interest, given rising incomes, increased jobs and more inventory choices", NAR Chief Economist Lawrence Yun said.

Source: Trading Economics