A recent Fox Business article titled “Is a more affordable housing market on the horizon?” suggests that relief may finally be coming for America’s housing affordability crisis. Early indicators include declining mortgage rates from their peak, modest growth in housing inventory, and slower home price appreciation.

This blog reviews the article’s insights, adds current forecasts on mortgage rates, inventory, and construction, and translates these into actionable strategies for real estate professionals nationwide, particularly those serving veteran buyers and luxury clients.

(Note: All data and forecasts are as of Q3 2025 unless otherwise specified.)

Key Insights from Fox Business: “More Affordable Housing Market on the Horizon”

• Mortgage Rate Relief – 30-year mortgage rates dipped to ~6.35% in September 2025 after sitting above 7% earlier in the cycle. That’s the biggest weekly drop in a year, offering refinancing opportunities and some affordability relief.

• Stalemate Easing – The “golden handcuffs” effect—homeowners locked in at sub-4% rates—has begun to loosen. With lower rates, more listings are coming to market.

• Inventory Improvement – Available homes are increasing, creating more balance between buyers and sellers.

• Cautious Optimism – Economists stress that while the outlook is better, affordability challenges will remain through 2026–2027.

Mortgage Rate Trends and Buyer Impact

• Rates Off Their Peak – Average 30-year fixed rates now sit in the 6.3–6.5% range, compared to 7%+ highs. On a $300,000 loan, that’s over $130/month in savings.

• Forecasts for Stability – Experts expect rates to hover in the mid-6% range into 2025. A drop into the 5% range—the level likely to ignite stronger demand—is not expected until mid-2026.

• Creative Financing Solutions – Buyers are increasingly using seller-paid rate buydowns, VA loan assumptions, and adjustable-rate mortgages to bridge affordability gaps.

For Realtors: Highlight VA loan assumptions and rate buydowns as tools to make deals work in today’s rate environment.

Housing Inventory: From Scarcity to Gradual Recovery

• National Growth – Inventory is up ~25% year-over-year, reaching its highest levels since 2019.

• More Balance – Unsold inventory now equals ~4.6 months of supply, nearing a balanced market.

• Sellers Adjusting – Days on market are rising, and price cuts/concessions are becoming standard.

• New Construction Boost – Builders are filling the gap with incentives such as covering closing costs or offering smaller, more affordable homes.

For Realtors: Encourage buyers to take advantage of increased options. Advise sellers to price correctly from the start to avoid prolonged listings.

Home Prices and Affordability

• National Prices – Median home price is ~$411,000, up just 2% year-over-year. Growth has slowed from the double-digit surges of 2020–2022.

• Affordability Still Tight – While price appreciation has cooled, mortgage payments remain elevated relative to incomes. Rising property taxes and insurance costs continue to weigh on buyers.

• No Major Crash Expected – With record homeowner equity and low foreclosure rates, a 2008-style crash is unlikely.

For Buyers: Stabilizing prices combined with modest rate relief present an opportunity to negotiate.
For Sellers: Set realistic expectations—pricing above market could lead to extended time on the market.

Construction and New Home Supply

• Strong Building Activity – Nationwide, new home starts are robust, particularly in Sun Belt states.

• Builder Incentives – Closing cost credits and rate buydowns are common.

• Affordability Focus – New homes are trending smaller (down ~15% in size) to better align with buyer budgets.

• Future Risks – Tariffs on building materials and declining builder confidence could slow supply in 2026.

For Realtors: Strengthen ties with builders offering incentives and affordable designs.

Market Segments: Veterans and Luxury Clients

Veteran & Military Buyers

• VA loans remain the most powerful financing option: no down payment, no PMI, and assumable rates.

• Sellers are becoming more open to VA offers as competition eases.

• PCS moves and BAH-friendly housing near bases remain key opportunities.

Luxury Clients

• Inventory in high-end markets is rising, giving buyers more leverage.

• Cash remains king—many luxury buyers are making value-driven decisions based on location, taxes, and long-term investment potential.

• Sellers should expect longer timelines and price with precision.

Strategic Takeaways for Realtors

1. Educate clients with webinars, blogs, or guides on VA loans and market shifts.

2. Negotiate effectively—push for concessions in buyer-friendly environments.

3. Refine pricing strategies to reflect current conditions, avoiding overpriced listings.

4. Leverage technology with 3D tours, analytics, and virtual consultations to reach a broader audience.

5. Diversify services by working with investors, renters, and second-home buyers to capture multiple market segments.

Summary

The U.S. housing market in late 2025 is trending toward improved affordability:

• Rates have eased into the mid-6% range.

• Inventory is up significantly.

• Price growth is stabilizing or flattening.

For Realtors, this means new opportunities:

• Veteran buyers should lean on VA benefits and negotiate strong deals.

• Luxury buyers have greater choice and leverage, especially in markets with rising inventory.

By combining data-driven insights with tailored client strategies, real estate professionals can thrive in an evolving market while guiding buyers and sellers with confidence into 2026.

Looking for insights on mortgage rates, housing affordability, and real estate trends in 2025? Work with a trusted, experienced real estate professional who understands the evolving market and can guide veteran buyers, luxury clients, and families nationwide toward smarter decisions.

Contact Christopher Beal, Realtor today at (210)-882-8583 or visit www.veteranrealestatesa.com to get started.