Housing Market News - August 30, 2025

WASHINGTON (August 30, 2025) - U.S. homebuyers saw a welcome reprieve this morning as mortgage rates hit a ten-month low, while analysts warn the broader housing market is entering a period of gradual realignment.

Mortgage data released today show the national average 30-year fixed mortgage rate fell to 6.53%, down 14 basis points from last week’s 6.67% and marking its lowest level since October 2024. The drop is already boosting purchase demand, as buyers reassess affordability ahead of anticipated Federal Reserve rate cuts next month.

Meanwhile, a new market analysis from J.P. Morgan Research underscores a transition away from the rapid price gains of the early 2020s toward moderate growth and regional disparity. Home prices are now forecast to rise by only 3% in 2025, compared with double-digit gains just two years ago. Inventory pressures are building unevenly across the country: existing home listings were up 15.9% year-over-year in July, reaching roughly 2.12 million units, while the South and West show pockets of oversupply even as the Northeast and Midwest remain supply-constrained.

Industry experts say today’s lower borrowing costs will offer some relief to hesitant buyers, yet the broader market shift means sellers must temper price expectations and consider incentives such as rate buydowns or closing-cost credits to remain competitive.

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