** 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

(Reporting by Aatreyee Dasgupta)

((Aatreyee.Dasgupta@thomsonreuters.com))