The US housing market has shown an unexpected surge in activity over the past 48 hours, with both buyers and sellers returning in force thanks to easing mortgage rates and a strong stock market. According to Zillow’s September 2025 report released last week, new listings climbed 3 percent year over year and total inventory is now 14 percent higher than a year ago, reversing a summer slowdown. The average 30-year fixed mortgage rate dropped to about 6.19 percent, its lowest point this year, sparking a seven-month high in existing-home sales. September home sales rose 1.5 percent from August and jumped 4.1 percent from September a year ago, signaling renewed market momentum.

Consumer behavior is shifting, with more buyers negotiating price cuts and sellers becoming flexible. Redfin reported that 15 percent of pending sales were canceled last week, yet sellers responded by accepting slower deals and reducing asking prices. Thirty percent of homes in September were purchased entirely in cash, an ongoing trend reflecting both caution and confidence, and the national median sales price climbed to $415,200, the highest for any September on record.

Market competition continues to evolve, with 15 of the 50 largest US housing markets now classified as buyer-friendly, up from six last year, driven by improved affordability and rising listings in cities such as Miami, Austin, and Indianapolis. In contrast, cities like Buffalo and San Francisco remain strong seller’s markets due to supply constraints and strict land-use regulations. Despite a 4.6-month supply of homes available, the market is still short of the balance typically seen at five to six months.

Regulatory changes in the past week are limited, but uncertainty from current government policies around tariffs and labor markets may impact long-term mortgage rates and inventory levels. Fannie Mae predicts a gradual dip in rates throughout 2026, with home sales projected to rise from 4.72 to 5.16 million units. Unlike earlier years, new product launches focus less on buyers’ incentives and more on accessible mortgage programs and technology to streamline the transaction process.

Compared to previous months, the market is thawing but not overheating. Industry leaders like Zillow and Redfin are focusing on flexibility and data-driven forecasting to help buyers and sellers seize opportunities, while caution remains due to economic signals and persistent inventory shortages. Overall, the latest data suggests that after years of volatility, pent-up demand and easing rates are finally opening the door for homebuyers.

For great deals today, check out https://amzn.to/44ci4hQ

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