Lower Rates Failed Their First Test
Mortgage rates dipped and the market faced its first real stress test.
Buyer activity fell nearly 10% to end the year, even with borrowing costs at their lowest since 2024.
That shift signals confidence, not financing, is now setting the pace.
When buyers slow while listings keep coming, pressure builds fast and distress moves closer.
Top stories of the week
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Mortgage Demand Drops Nearly 10% to End 2025, Despite Lower Interest Rates
Mortgage rates slid to 6.25%, the lowest since 2024, but buyers still stepped back. Applications fell nearly 10% to end the year, loan sizes shrank, and lower rates alone were not enough to restart demand.
A Cooling Labor Market Could Shape the 2026 Housing Outlook
Lower mortgage rates and easing affordability are setting up 2026, but the labor market is slowing. December added just 50,000 jobs, unemployment rose to 4.4%, and hiring momentum cooled. Fewer job moves often mean fewer home moves.
Bad-Joke Housing CPIs, Absurd Health Insurance CPI Still Marr Today’s CPI Report
Today’s CPI looks calmer than reality. Flawed housing and health insurance calculations are pushing inflation lower on paper, skewing year over year readings and muddying signals the Fed, markets, and households rely on.
Trump’s Mortgage Bond Order Pushes Rates Below 6% For First Time in Nearly 3 Years
Mortgage rates just dipped to 5.99%, the first time under 6% in nearly three years. That single move added about $30,000 in buying power since summer, and buyers now have more leverage with more sellers in the market.
Home Affordability Remains Strained Nationwide, with Modest Fourth Quarter Improvement
Homes are still pricey almost everywhere, but Q4 brought a small break. In 86% of counties, affordability improved as mortgage rates eased, even though prices still sit far above historic norms. The market is tight, but the pressure finally softened a bit.
Americans are Changing Where they’re Moving. Here’s How that Could Affect CRE
Americans are leaving big cities for smaller, cheaper markets, and it is already reshaping commercial real estate. Oregon just led inbound moves, Sun Belt momentum is cooling, and investors are rethinking where demand really shows up next.
