Housing Market Slows Despite Drop in Mortgage Rates -- Market Talk

Dow Jones12-18 23:39

1039 ET - Seasonal cooling is finally seeping into the housing market after an unseasonably active fall, according to Zillow. Price cuts from sellers dropped back to normal levels from near-record highs; a rare instance of buyers losing a bit of leverage in a year when many housing trends moved in their favor. Affordability is still a hurdle for home buyers, Zllow says, but 2025 brought real progress. Mortgage payments dropped by more than $100 a month, while incomes continued to rise. For many households, that small shift can be the difference between sitting out the market and finally being able to buy or sell a home. Low mortgage rates in September and October pushed buyers and sellers to be more active than usual. But November saw a return to seasonality, despite mortgage rates that ticked down to 2025 lows. Homeowners without a need to sell are likely deciding to wait out the winter. (chris.wack@wsj.com)

(END) Dow Jones Newswires

December 18, 2025 10:39 ET (15:39 GMT)

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