The US housing market remained volatile over the past 48 hours, reflecting broader 2025 trends of cooling mortgage rates, softening prices, and shifting buyer dynamics. After sharp spikes earlier this year, the average 30-year fixed mortgage rate hovered at 6.30 percent for the week ending September 25, 2025, slightly rising from 6.26 percent the previous week but noticeably lower than the 7 percent rates seen late last year. The Federal Reserve’s recent quarter-point rate cut provided relief, yet uncertainty about further cuts persists as the Fed signals a cautious stance for the remainder of the year.

According to new data from the National Association of Realtors, existing-home sales dipped just 0.2 percent month-over-month in August but were up 1.8 percent year-over-year. Inventory improved by 11.7 percent compared to last year, reaching a 4.6-month supply and suggesting more options for buyers. Even so, new listings fell by 1.9 percent annually last week and the median list price has now held flat over seven consecutive weeks. The price per square foot declined for the second week straight, marking a shift as sellers adjust to slower demand and increased time on market.

Analysts from Zillow and Realtor.com warn that while buyer demand remains steady, especially among millennials entering their homebuying years, affordability constraints and persistent inventory shortages are pushing more buyers toward suburban and rural locations. Features that support remote work and energy efficiency are seeing increased demand. Market supply pressures mean regional price differences are emerging, with some areas plateauing or even correcting while others retain high prices due to local demand.

Major firms have responded with new mortgage products targeting first-time buyers and are doubling down on digital tools for virtual tours, but transaction activity remains tepid. Industry leaders emphasize flexibility, increased seller incentives, and enhanced digital offerings as core strategies in the face of consumer hesitancy and economic uncertainty.

In summary, the US housing sector is entering its most buyer-friendly period in nearly a decade but remains constrained by supply bottlenecks, affordability challenges, and shifting consumer preferences. While the immediate outlook is stable, future changes will depend heavily on the Fed’s actions and broader economic developments.

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This content was created in partnership and with the help of Artificial Intelligence AI