The US housing market is entering a fragile reset, marked by easing mortgage costs but growing signs of local price stress and shifting buyer behavior.Mortgage rates have edged down but remain historically high. The average 30 year fixed rate is around 6.17 to 6.19 percent this week, only a hair lower than last week but down roughly half a percentage point from about 6.69 percent a year ago. 1 7 This drop reflects two Federal Reserve rate cuts since September and expectations of further easing, yet rates remain more than double their 2021 lows. 1 7Prices and home values are no longer rising everywhere. New analysis of Zillow estimates shows that as of October 2025, about 53 percent of US homes lost value over the prior year, compared with just 16 percent a year earlier, the highest share of price declines in at least a decade. 8 This confirms that the boom has clearly broken in many local markets even as national averages mask the shift.On the ground, inventory is rebuilding while demand cools. In several metros, active listings are up sharply, months of supply have moved into buyer friendly territory, and days on market are stretching. In places like Nashville, the number of homes for sale has jumped by more than 40 percent in a year, and new construction often sits three months or more before finding a buyer. 3 In parts of the Pacific Northwest, inventory has nearly doubled and pending sales are down close to 20 percent versus last year. 2 Sellers that once sparked bidding wars now cut prices and offer concessions such as mortgage rate buydowns and closing cost credits to attract cautious buyers. 2 3Consumer behavior is adjusting to affordability pressure. First time buyers are delaying purchases and staying in rentals, while existing owners cling to low pandemic era mortgage rates rather than trading up, reducing move up demand. 1 3 Industry leaders, from big builders to brokerage firms, are responding by emphasizing incentives, financing packages, and more realistic pricing to keep transactions moving in a thinner market. 1 3 Compared with the flat, locked up market of 2023 and 2024, today’s environment shows the first broad signs of a slow correction, with modestly lower borrowing costs but a clearer risk of localized price declines ahead. 5 7 8For great deals today, check out https://amzn.to/44ci4hQThis content was created in partnership and with the help of Artificial Intelligence AI

Ver todos los episodios