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As we head into the final stretch of the year, the real estate market has been showing encouraging signs of strength, despite disappointing news on interest rates.
Purchase demand is now hovering near its strongest point since January 2023, a promising sign of buyer confidence. Refinance applications, which were nearly stagnant earlier in the year, are also showing life again as homeowners take advantage of slight dips in rates when they appear.
With affordability still a central challenge, the industry is actively exploring creative solutions. One idea that has generated lots of media buzz is the idea of a 50 year mortgage. Conceptually, by drawing out the mortgage over 50 years versus the standard 30 year term, the 50 year mortgage theoretically would assist more people into getting homes because their payment would be lower. Practically speaking however, you would be spending 50 years of your life paying off that mortgage and therefore paying thousands and thousands more interest over that time period.
Looking forward to the next Federal Reserve meeting set for December 10, 2025, a rate cut is not anticipated. A majority of members at the last Fed meeting expressed hesitation about cutting rates due to ongoing concerns about inflation.
Despite rates, the National Association of Realtors has predicted for 2026 that home sales will increase by about 14% and home prices to rise by at least 4%. This prediction, coupled with how the market has been performing, indicates renewed buyer interest.
