In the past 48 hours, the US housing industry has shown signs of stabilization following a turbulent stretch earlier in 2025. Average 30-year fixed mortgage rates for the week ending September 25, 2025, settled near 6.30 percent, slightly down from the recent peak of 6.56 percent at the end of August. Industry experts expect rates to hover in the mid-6 percent range through October, influenced by the Federal Reserve’s recent interest rate policies. Fannie Mae forecasts average rates at 6.4 percent by year’s end, while the Mortgage Bankers Association anticipates they may remain higher due to stubborn inflation pressures. The relatively lower rates compared to early 2025 have improved buyer sentiment, but overall market volatility persists.

Latest data from the National Association of Realtors for August, released in late September, shows existing-home sales dipped by 0.2 percent month-over-month but rose 1.8 percent compared to last year. Unsold inventory expanded by 11.7 percent year-over-year, now standing at 1.53 million units and representing a 4.6-month supply. Median home prices climbed 2 percent to $422,600, signaling ongoing demand despite higher borrowing costs. Single-family home sales saw a 2.5 percent annual increase, while condo and co-op sales fell 5.1 percent, highlighting a consumer shift toward larger, traditional homes. Properties are taking longer to sell at a median of 31 days, up from 26 days last year, granting buyers more negotiating power.

Regionally, the Midwest stands out for affordability, with sales rising 3.2 percent year-over-year and median prices at $330,500. The West remains the most expensive, with median prices up to $624,300, but sales activity has cooled. Cash sales and purchases from individual investors comprise about 28 percent and 21 percent of recent transactions respectively, indicating continued confidence among smaller players even as institutional investor activity moderates.

Supply remains tight despite increased construction, with Zillow noting buyers are expanding into more affordable suburban and rural areas. The rental market is growing in importance, as high prices and mortgage rates push more first-time buyers to rent instead. Industry leaders such as Zillow are deepening their focus on technology-driven solutions, including virtual tours and data analytics, to streamline transactions and respond to shifting consumer preferences for remote work and smart home features.

Compared to previous months, rising inventory and reduced rate volatility have made the market more buyer-friendly, though affordability challenges and regional disparities persist. Market watchers anticipate that stabilized mortgage rates and inventory growth will gradually support renewed housing demand in the months ahead.

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