U.S. existing home sales surged in December, up 5.1% to a rate of 4.35 million units, surpassing economists’ forecasts. Lower mortgage rates and slower home price growth were contributing factors. Inventory levels remain tight, with homeowners hesitant to sell. Mortgage rates dropped in 2025, but remain higher than three years ago.

President Trump ordered the Federal Housing Finance Agency to buy $200 billion in bonds from Fannie Mae and Freddie Mac to lower mortgage rates. Analysts predict a modest impact, as rates still track the 10-year Treasury yield. Existing home inventory rose 3.5% from last year to 1.18 million units in December.

The median existing home price increased 0.4% from last year to $405,400. Trump’s proposal to ban institutional investors from buying single-family homes aims to improve affordability. Inventory levels indicate it would take 3.3 months to exhaust current homes for sale, up from 3.2 months last year.

Read more at Yahoo Finance: US existing home sales accelerate in December