What's Happening?
The latest housing report from Realtor.com indicates that nearly 20% of home listings in the U.S. reduced their prices in September 2025, despite a slight increase in mortgage rates. The average rate for a 30-year mortgage rose to 6.34%, up from 6.3% the previous week, according to Freddie Mac. This marks the second consecutive week of rate increases, although rates remain lower than they have been in recent months. The national median list price for homes held steady at $425,000, with a notable 3.6% decrease in the Western U.S. Active home listings have increased by 17% compared to the previous year, continuing a 23-month trend of year-on-year inventory growth. However, the pace of this growth has slowed over the past four months.
Why It's Important?
The reduction in home prices and the increase in active listings suggest a shift in the housing market dynamics, potentially offering more opportunities for buyers. This trend could indicate a cooling market, where buyers have more negotiating power, especially in the lower price ranges. The increase in mortgage rates, although slight, may impact affordability and buyer sentiment. For sellers, particularly those in the $350,000-$500,000 range, the need to reduce prices could reflect challenges in meeting buyer expectations amid rising costs associated with homeownership, such as taxes and insurance.
What's Next?
As the best week to buy a house approaches, from October 12 to October 18, potential buyers may find increased inventory and potentially lower prices. This period is expected to offer up to 32.6% more active listings than earlier in the year, with potential savings of over $15,000 on average. Buyers and sellers alike will need to navigate the evolving market conditions, balancing the impacts of mortgage rate fluctuations and inventory changes.
