As 2025 comes to a close, the housing market continues to navigate change—with signals pointing to resilience despite ongoing headwinds. Whether you’re a buyer, seller, or real estate professional, understanding what’s moving the market today helps you prepare for what’s next.

Economic Shifts: Gradual Cooling, but Underlying Strength

The U.S. economy is showing signs of a controlled cooldown. GDP growth is moderating, job openings are declining slightly, and consumer spending is easing—but there’s no indication of a steep decline. Unemployment remains low and wage growth is positive, helping many households stay optimistic heading into the new year.

Federal Reserve: On Hold After Recent Cuts

After three rate cuts earlier this year, the Fed held interest rates steady this month as they assess the impact of prior moves. Inflation has improved but remains a focus. Markets are anticipating the possibility of one more cut in early 2026, depending on how economic indicators evolve.

Mortgage Rates: Drifting Lower, Offering Renewed Opportunity

Mortgage rates have steadily declined from their 2025 highs. As of this month, average 30-year fixed rates are hovering around 6.5%, down nearly a full percentage point from late summer. This trend could create a favorable entry point for buyers who paused earlier this year and may support increased refinance activity as well.

Buyer and Seller Impact: More Motivation, Less Hesitation

Lower rates are prompting more would-be buyers to re-enter the market. While affordability remains a challenge, rate relief—combined with stabilizing home prices—is improving buyer sentiment. Sellers, too, are starting to re-engage, with more listings coming online compared to the fall. The pace of the market remains slower than the boom years, but signs of life are building.

Agent Impact: Conversations Matter More Than Ever

Now is the time for proactive outreach. Many buyers and sellers are looking for clarity—and those who educate and advise will build trust. Help clients understand how today’s market compares to past conditions and what strategies make sense heading into 2026. Mortgage professionals and real estate agents working in sync can provide the reassurance and tools clients need to make confident decisions.