Posted on 12/26/2025 6:26:25 PM PST by SeekAndFind
The weekly mortgage rate on a 30-year fixed-rate mortgage fell to 6.18 percent for the week ending Dec. 24 as the housing market continues to lean in favor of buyers.
The 6.18 percent rate is the lowest level since 2022 and a slight decline from 6.21 percent the previous week, according to Freddie Mac data. The current rate is 0.86 percentage points below the yearly peak of 7.04 percent reached in mid-January.
The recent rate decline comes as the U.S. housing market registered 37.2 percent more sellers than buyers in November, real estate brokerage Redfin said in a statement on Dec. 23.
“That’s the largest gap in records dating back to 2013 aside from this summer. It compares with 35.6 percent a month earlier and 17 percent a year earlier,” the brokerage said.
“Redfin defines a market with over 10 percent more sellers than buyers as a buyer’s market. By this definition, it has been a buyer’s market since May 2024.”
The 37.2 percent gap translates into 529,770 more sellers in the market.
Among the 50 most populous U.S. metropolitan regions, Austin, Texas, was the strongest buyer’s market last month, with 114 percent more sellers than buyers, according to Redfin.
This was followed by San Antonio, Texas; Nashville; and Fort Lauderdale, Florida, each of which had sellers outnumbering buyers by more than 100 percent.
Out of the 50 metros, 36 were buyer’s markets, seven were balanced, and the remaining seven were seller’s markets.
The number of home buyers hit the second-lowest level on record in November, as many backed off amid economic uncertainty and high housing costs, the statement said.
“A modest improvement in housing affordability could bring some homebuyers off the sidelines in 2026, which could narrow the gap between homebuyers and sellers,” Redfin senior economist Asad Khan said.
“But the housing market is likely to remain in buyer’s market territory for the foreseeable future, with sellers cutting prices or offering concessions to lure buyers.”
Builder confidence in the market for newly built single-family homes inched higher this month despite businesses facing challenges such as rising construction costs, economic uncertainty, and buyer hesitation, the National Association of Home Builders (NAHB) said in a Dec. 15 statement.
“In positive signs for the market, builders report that future sales expectations have been above the key breakeven level of 50 for the past three months, and the recent easing of monetary policy should help builder loan conditions at the start of 2026,” NAHB chief economist Robert Dietz said.
The Federal Reserve has cut its benchmark interest rates three times this year, pushing it down to a range of 3.5 to 3.75 percent.
In a Dec. 11 commentary, Lisa Sturtevant, chief economist at real estate data company Bright MLS, suggested that even if mortgage rates were to decline further, other concerns are weighing on prospective buyers’ minds.
On the positive side, Sturtevant expects mortgage rates to fall further.
“Expect mortgage rates to ease somewhat in 2026, though Bright MLS forecasts are for rates to remain above 6 percent through the end of next year,” she wrote.
“Slightly lower rates and slower price growth should improve affordability a little, which could bring more buyers into the market.”
President Donald Trump has vowed to lower mortgage costs.
“I will announce some of the most aggressive housing reform plans in American history,” he said during a televised address on Dec. 17.
Trump said he plans to announce a new Federal Reserve chairman who will support lower interest rates, which will trigger further decline in mortgage rates.
He suggested that illegal immigration under the Biden administration contributed significantly to housing costs.
“Over 60 percent of growth in the rental market came from foreign migrants,” the president said. “For the first time in 50 years, we are now seeing reverse migration as migrants go back home, leaving more housing and more jobs for Americans.”
Dear FRiends,
We need your continuing support to keep FR funded. Your donations are our sole source of funding. No sugar daddies, no advertisers, no paid memberships, no commercial sales, no gimmicks, no tax subsidies. No spam, no pop-ups, no ad trackers.
If you enjoy using FR and agree it's a worthwhile endeavor, please consider making a contribution today:
Click here: to donate by Credit Card
Or here: to donate by PayPal
Or by mail to: Free Republic, LLC - PO Box 9771 - Fresno, CA 93794
Thank you very much and God bless you,
Jim
bkmk
Affordability is improving. Democrats are knashing their teeth.
If there continues to be this kind of surplus selling both the mortgage rates and the price of the homes should fall.
Twice as many sellers as buyers in the Austin, TX market? I thought the DP’s from Cali were beating the doors down to move into that liberal Texas enclave?
Redfin is the keeper of the stats, so I guess we take that at face value. Perhaps there’s going to be a big adjustment downward in the median home price in the spring?
Great that they are down almost a full point from January, when it hit 7.04%, but still higher the most of the last 25 years. For reference, rates were in the high 3s for most of Trump’s pre-covid first term. Those decades of low rates pushed housing prices up, and it they are going to be sticky coming down.
Democrats won’t knash their teeth - they’ll send out their press bimbos and pretentious ‘men’ to cry for home owners selling for less than they had hoped for...
Take note: democrats do not want affordable housing. They want people to complain about lack of affordable housing in perpetuity.
House in Nashville Mkt down 10% in one year.
Prices are coming down.
They "renovate" by painted every thing gray, putting in gray vinyl floors and sticking up lighting that belongs over a tool bench in a workshop.
The horror. The horror.
Austin topped out in 2022.
There are subdivisions where the same house, sometimes on the same street are now 25% less than the top.
Plus it may even be the builder who is selling a brand new house for less than the three year old house.
My entire house is Benjamin Moore Calming Cream.
Walls are eggshell.
Trim is Semi Gloss.
Flat white ceilings.
The only metro markets that are still going up in price are in New England and the upper Midwest.
The strongest growth cities in the country from 2024 to 2025 are Detroit and Columbus.
They have the largest percentage increase.
However, southern NH and CT continue to go up in price based on lack of availability.
All the boom markets that had big influxes during covid are now down with the exception of Miami and Orlando.
Orlando is now in the top ten volume of new housing starts in the country.
Dallas/Ft Worth and Houston are still the top two in volume of housing starts. Even though they are off from their highs of a couple years ago. Phoenix is still number three in volume. Followed by NYC, LA and the valley, Atlanta.
I really hate it when you can tell they painted (badly) over what was probably beautiful wood trim.
Or birch wood cabinets.
Interesting.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.