Homeownership Is Slowly But Surely Becoming More Attainable

The Big Story

Quick Take:

As interest rates continue to fall, median monthly P&I payments do as well, making housing slowly but surely more affordable on a national scale.
Mortgage rates are currently at the lowest point they’ve been at in recent years, as the Fed continues its rate cut cycle.
Despite falling interest rates, inventories still remain higher than they were at this point last year.
We very briefly saw rates break the 6% mark recently, following some commentary from Trump regarding the purchase of mortgage-backed securities by Fannie and Freddie.

🏡 Homeownership Is Becoming More Attainable

In November, the median monthly P&I payment fell to $2,056, down from this year’s peak of $2,311—a meaningful shift driven largely by declining interest rates.

Rates dropped from 6.79% in November 2024 to 6.22% in November 2025, an 8.39% year-over-year decrease, even as the national median home price rose 1.19%. For most buyers, affordability is still defined by the monthly payment, not just the purchase price—meaning lower rates continue to expand buying power.

📉 Mortgage Rates at Multi-Year Lows

Rates have continued trending lower, recently reaching around 6.06% for a 30-year fixed mortgage.

However, expectations for near-term Fed action have softened. CME FedWatch now places the chance of a January rate cut at just 5%. As new economic data is released in the coming months, markets will be watching closely for signals on where rates may head next.

🏘️ Falling Rates, Rising Inventory

Despite lower mortgage rates, inventory increased in November:

Inventory rose 7.52% year-over-year
Existing home sales dipped slightly
New listings increased by ~1.7%

This trend suggests inventory may continue building through winter before the traditional spring market picks up. Overall, 2025 delivered a different market dynamic than many expected, setting the stage for an interesting year ahead.

💡 Looking Ahead to 2026

A growing group of buyers and sellers remains on the sidelines, closely watching interest rates for the right moment to act. Recent commentary from policymakers has fueled expectations of future cuts—though the pace remains uncertain.

If larger rate reductions materialize, market activity could accelerate quickly, making timing and preparedness especially important

📍 Remember: Real Estate Is Local

While national trends shape the big picture, real estate decisions are driven by local conditions. Inventory, pricing, and buyer activity can vary significantly by area, making neighborhood-level insight essential when evaluating opportunity and timing.