(Kitco News) - The U.S. housing market has been unable to attract solid momentum and continues to struggle as fewer consumers begin the process of buying a new home, according to the latest report from the National Association of Realtors (NAR).
The U.S. pending home sales index dropped 9.3% in December, the NAR announced on Wednesday. The data was significantly weaker than forecasts, as economists had expected only a 0.3% decline.
For the year, the pending home sales index fell 3%. The weakness in the housing market came as the Federal Reserve aggressively cut interest rates in the second half of 2025.
“The housing sector is not out of the woods yet,” said NAR Chief Economist Lawrence Yun. “After several months of encouraging signs in pending contracts and closed sales, the December new contract figures have dampened the short-term outlook.”
“We’ll be watching the data in the coming months to determine whether the soft contract signings were a one-month aberration or the start of an underlying trend,” he added.
Although the Federal Reserve is expected to keep rates unchanged until at least June, monetary policy is expected to ease further in the second half of 2026. However, mortgage rates remain elevated.
The gold market is not seeing much reaction to the disappointing housing data, as it remains well supported by geopolitical uncertainty. Spot gold last traded at $4,864.70 an ounce, up more than 2% on the day.
