As we enter the final stretch of 2025, the housing market is showing signs of new energy. With inflation easing and interest rates trending lower, many buyers and sellers are finding a renewed sense of opportunity. Whether you’re looking to make a move or help someone who is, staying informed is key. Here’s a quick update on what’s driving the market right now, and what it could mean for you.

Economic Shifts: Signs of Relief

After months of volatility, some positive shifts are taking place. Oil prices have declined 10–15% compared to last year, helping to reduce overall inflation and bring some relief to consumer budgets. While labor participation remains below pre-pandemic levels, the reduction in inflationary pressure is welcome news for households looking to make large purchases, including a home.

Federal Reserve: A Turning Point in Policy

The Federal Reserve is continuing its pivot toward a more supportive stance, following a recent 25-basis-point rate cut. Another reduction is likely at the upcoming October 29 meeting, and Chair Powell has even signaled a potential end to the Fed’s balance sheet tightening. These developments suggest a more buyer-friendly environment heading into 2026, and a chance for many to lock in financing before further rate cuts shift the landscape.

Mortgage Rates: Opportunity Is Knocking

Mortgage rates have dipped to some of the lowest levels we’ve seen all year, hovering around 6.2% for well-qualified buyers. With market expectations pointing toward even more favorable rates over the next 12–18 months, this could be a smart window to act. For those who paused earlier this year due to affordability concerns, now may be the time to re-engage.

Buyer & Seller Impact: Time to Strategize

Lower mortgage rates are expanding affordability for buyers and opening the door for more sellers to come off the sidelines. Demand remains steady, but homes that are priced correctly continue to move quickly—especially in entry-level and move-up segments. Partnering with a lender who can help buyers access creative loan programs or secure pre-approvals quickly can give both agents and clients a competitive edge.

Agent Impact: Be the Trusted Voice

Agents who can communicate these changes clearly and confidently are poised to lead in this market. It’s not just about quoting rates, it’s about offering solutions, navigating uncertainty, and helping clients see the bigger picture. At Mutual of Omaha Mortgage, we’re here to support that role—whether it’s through new programs, tailored advice, or tools that help turn knowledge into action.