Rates & Inventory Settle Down

Market News
Written By Jennifer Patel

📉 Mortgage Applications: Calm but Meaningful

Purchase applications were unchanged this week—buyers are still active, just more selective.

Refinance applications nudged higher, tied to slight rate dips and increased interest in HELOC alternatives as homeowners look for more flexible borrowing options.

💸 Affordability: Finally Improving

For the first time in well over a year, buyers are catching a break.

  • Mortgage rates are roughly 0.75% lower year-over-year, easing monthly payments.

  • Home prices have softened in many markets, especially where inventory is rising.

  • Combined, this is boosting buyer purchasing power at a time of year when demand is usually lighter.

After 24+ months of affordability strain, this shift is a welcome one—especially for first-time homebuyers.

🏠 Inventory: Still Rising, Still Helpful

National inventory continues its slow upward climb, rising 2–4% across major metros. Homes are sitting on the market longer—40–43 days on average—which is pushing sellers toward more negotiation. With inventory up and demand slowing seasonally, the average cumulative price cut nationally has reached approximately $25,000.

That means motivated buyers with flexible search timelines are getting better deals than at any point since early 2021.

📈 Existing Home Sales Hit an 8-Month High

October brought the strongest existing-home-sales month since early spring.

Here’s how the regional breakdown shook out:

  • Midwest: +5.3%

  • South: +0.5%

  • Northeast: Flat

  • West: –1.3%

This uneven recovery suggests affordability and inventory are driving the bus—regions with more modest price points and better inventory saw the healthiest gains.

And here’s a particularly bright note:

👟 First-Time Buyers Step Up

First-time homebuyers accounted for 32% of October sales, slightly higher than last month and well above the pre-pandemic norm. Lower rates + more inventory + softer prices are finally helping these buyers gain traction.

🏗️ Builder Incentives: Still a Major Force

Builders remain aggressive:

  • 2-1 buydowns

  • 3–5% closing cost credits

  • Price reductions on near-completion specs

With more inventory coming online in Q4, incentives are likely to continue through the holidays.

Sources

Jennifer Patel
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