The National Real Estate Market

Across the country, home sales continue to slow, prices are stagnant, and inventory is rising, creating more opportunities for buyers. On average in the U.S., 34% of active listings have seen price reductions, the highest percentage we’ve seen in years. Even the Northeast, traditionally the strongest housing market in the country, saw sales decline 4% year over year.

The typical seasonal holiday slowdown, combined with elevated mortgage rates, could lead to a more pronounced cooling of the market.

Inflation & Interest Rates

Mortgage rates continue to hover in the low 7% range, with the possibility of another increase this year or in 2027. This week’s CPI report indicated that inflation remains stubborn and The Fed is expected to keep rates elevated as we head into the holiday season. Despite these pressures, consumer spending remains strong, adding to the Fed’s challenge of keeping costs down.

The November midterm elections are not expected to directly impact mortgage rates. The Federal Reserve operates independently of political influence, with interest rate decisions driven by economic conditions and inflation data, rather than politics.