Real Estate Rundown November 2025

Photo By Jonnelle Yankovich via UnSplash

Fed Cut Today, No Promise for December

The Federal Reserve’s latest 25-basis-point rate cut was widely expected, but Chairman Jerome Powell made it clear that another cut in December is far from guaranteed. His cautious remarks caused Treasury yields to rise, which could add upward pressure to mortgage rates in the near term. Despite talk of a cooling labor market, alternative data hasn’t yet shown signs of significant slowdown, and Powell compared policymaking in this uncertain environment to “driving in the fog.” Zillow expects mortgage rates to hover within the 6%–7% range through 2026, as inflation risks and labor-market weakness balance each other out. For housing, that means modest relief ahead: while lower rates alone won’t solve affordability challenges, they could help unlock pent-up demand from sidelined buyers and sellers, setting the stage for a busier spring 2026 market.

Homes Sales Rebound This Fall

Existing-home sales rose in September as buyers reentered the market, encouraged by lower mortgage rates and growing inventory. The National Association of REALTORS® reported a 1.5% monthly increase and a 4.1% annual gain in home sales, with the West leading regional growth. Mortgage rates averaged 6.35%—down from nearly 7% earlier in the year—helping improve affordability and boosting first-time buyer activity, which climbed to 30% of all transactions. Inventory reached a five-year high, giving buyers more time and options, while the median home price rose modestly to $415,200, up 2.1% from last year. Cash buyers continued to play a major role, making up 30% of sales nationwide and dominating markets in Florida and other Sun Belt states. Overall, easing rates, increased listings, and steady home values suggest a more balanced housing market heading into 2026, offering fresh opportunities for both buyers and sellers.

Pending Homes Sales in September

Pending home sales held steady in September, signaling that the fall housing market remains sluggish despite the boost of lower mortgage rates. According to the National Association of Realtors®, contract signings were flat from August and down 0.9% from a year ago, with regional declines in the Midwest and West offset by modest gains in the Northeast and South. Mortgage rates averaged 6.35%—their lowest level in a year—and have since dipped further to around 6.19% as the Federal Reserve begins cutting rates. While these lower rates could save buyers roughly $150 per month on a median-priced home, affordability challenges and economic uncertainty continue to weigh on sentiment. Most consumers still say it’s a bad time to buy, and recent rate declines have fueled more refinancing activity than new home purchases. Experts suggest that with softening prices, growing inventory, and rates near three-year lows, late fall and early 2026 could finally open a more favorable window for determined buyers.