US homebuilders end year on mixed note as home sales remain tepid

U.S. homebuilders are set to close this year with mixed share performance, as the sector struggles to ramp up homes sales amid consumer affordability constraints despite interest rates easing in the latter half of 2025

Shares of U.S. homebuilders D R Horton DHI.N , Lennar LEN.N, Pultegroup PHM.N and Toll Brothers TOL.N slightly down between 0.4% and 0.6% in morning trade amid broader subdued market open .N

Pending Home Sales Index, based on signed contracts, rose 3.3% in November from last month and 2.6% from a year ago, the National Association of Realtors (NAR) said earlier this week

NAR Chief Economist Lawrence Yun said the data shows "the best performance in nearly three years"

Redfin report released on December 2 predicts 3% more existing home sales in 2026 and mortgage rates dipping to low-6% range

Says sales will increase only slightly because affordability will improve just enough to lure some on-the-fence buyers

Including session moves, DHI, PHM and TOL gained between 4% and 8.5% YTD, while LEN lost 21% YTD

PHLX Housing Index .HGX down 2.8% YTD