Catenaa, Saturday, November 15, 2025-The US housing market is showing cautious improvement as mortgage rates ease, sales tick upward, and inventory rises, giving buyers and lenders a modest boost.
The average 30-year fixed mortgage rate fell to about 6.3%–6.4% in late October, down from above 7% earlier in the year.
The Federal Reserve’s rate cuts in September and October contributed to the decline, and analysts expect rates to remain stable this month.
Lower rates have sparked an uptick in mortgage and refinance applications, as buyers previously sidelined return to the market.
Home sales saw a 1.5% increase in September, marking the highest pace in seven months, with the South and Northeast reporting the strongest gains.
Luxury home sales led the rebound, while starter-home purchases also edged higher, reaching about 30% of total transactions.
Inventory has improved, rising roughly 14% year-over-year and providing buyers more options. The average home now sits on the market 33 days, slightly longer than last year, allowing for more negotiation and reducing the intense competition of prior years. Despite the improvements, total supply remains below long-term norms, keeping prices stable.
The national median existing-home price is roughly $415,000, up 2% from a year ago, reflecting steady values rather than rapid growth.
Economists predict modest gains in 2026 as interest rates potentially fall further and housing demand remains strong. The market remains manageable for buyers, sellers, and lenders, with affordability challenges easing slightly as conditions normalize.
