Easing Mortgage Rates and Rising Inventory Lift Existing Home Sales in September

Existing home sales climbed to a seven-month high in September as mortgage rates eased and more resale homes hit the market, according to new data from the National Association of Realtors (NAR). Inventory matched its highest level since May 2020, giving buyers more options than they've seen in years, even though overall supply still sits below pre-pandemic norms.

Earlier this year, mortgage rates hovered between 6.5% and 7% amid ongoing economic and tariff uncertainty, keeping many would-be buyers and sellers on the sidelines. That picture has started to shift. After the Federal Reserve resumed rate cuts at its September meeting, mortgage rates slipped below 6.5% for the first time this year. Last week, the average rate fell to 6.27%, nearly a one-year low. With additional rate cuts expected in the coming months, lower borrowing costs combined with rising inventory are poised to draw more activity into the market.

In September, total existing home sales, which include single-family homes, townhomes, condominiums, and co-ops, rose 1.5% to a seasonally adjusted annual rate of 4.06 million units. Compared with a year ago, sales were 4.1% higher, signaling that demand is slowly rebuilding as affordability improves from the extremes of the last two years.

Inventory is also finally moving in the right direction. The number of existing homes on the market reached 1.55 million units in September, up 1.3% from August and 14.0% higher than a year earlier. At the current sales pace, that translates into a 4.6-month supply of homes which is unchanged from July and August but higher than the 4.2-month supply seen in September 2024. A range of roughly 4.5 to 6 months' supply is generally considered a balanced market, suggesting conditions are inching away from the heavily seller-skewed environment of recent years.

Homes are also taking a bit longer to sell. Properties stayed on the market for a median of 33 days in September, up from 31 days in August and 28 days a year ago. That increase reflects both more choices for buyers and a slightly less frantic pace than during the height of the pandemic housing boom, when properties often received multiple offers within days.

One notable shift is the growing presence of first-time buyers. They accounted for 30% of all existing home purchases in September, up from 28% in August and 26% a year earlier. As mortgage rates ease and inventory improves, more entry-level buyers appear to be finding an opening in a market that has been challenging for years.

At the same time, all-cash buyers continue to make up a large share of transactions. In September, 30% of sales were all-cash, up from 28% in August and unchanged from a year ago. Because these buyers are not directly affected by interest rate changes, their steady presence has helped support demand even as financing costs fluctuated.

Prices, meanwhile, remain elevated but show signs of moderating pressure ahead. The median sales price of all existing homes in September was $415,200, up 2.1% from a year earlier and marking the 27th straight month of year-over-year price increases. By contrast, the median price for condominiums and co-ops slipped 0.6% from last year to $360,300. With inventory gradually increasing, NAR expects the recent gains in supply to put downward pressure on resale home prices in many markets in 2025, potentially bringing some long-awaited relief to buyers.

Regionally, the recovery is uneven but generally positive. Three of the four major U.S. regions saw an increase in existing home sales in September. The West led the way with a 5.5% gain, followed by a 2.1% increase in the Northeast and a 1.6% rise in the South. The Midwest was the outlier, with sales dipping 2.1% for the month. On a year-over-year basis, sales were up 6.9% in the South, 4.3% in the Northeast, and 2.2% in the Midwest, while remaining flat in the West.

Looking ahead, contract activity points to further support for sales. The Pending Home Sales Index (PHSI), a forward-looking gauge based on signed contracts, rose from 71.8 to 74.7 in August. Pending sales were 3.8% higher than a year earlier, suggesting that lower mortgage rates are already coaxing more buyers back into the market. If rates continue to drift lower and inventory keeps building, 2025 could bring a more balanced, less volatile housing market than buyers and sellers have faced in recent years.

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A New Gathering Place for Plaquemines Parish

The Park on Avenue A is officially open, and Plaquemines Parish turned out in true community fashion to celebrate. From the moment the invitation went out, "Join us today at 2pm for the ribbon cutting ceremony of The Park on Avenue A!", it was clear this new park was going to be something special for families, neighbors, and even their four-legged friends.

Sunday's ribbon cutting for the park at 610 Avenue A, was a beautiful day and an incredible event for the entire community. Families gathered to explore the new space, children ran and played, and pups trotted happily alongside their owners. One of the highlights of the celebration was the series of free pickleball clinics with pro Sasha Salk, giving both beginners and seasoned players a chance to learn, practice, and enjoy one of the fastest-growing sports in the country. Clinics ran through 4 p.m., and guests enjoyed free treats for the kids and pups, adding to the fun, family-friendly atmosphere.

This project was truly a team effort, and many partners worked hard to bring The Park on Avenue A from idea to reality. Special thanks go to Chris Schulz, District 3 Council, and the District 3 Office; Parish President Keith Hinkley; AARP; and the Recreation, PROWM, and Engineering Departments. Their collaboration, planning, and dedication helped transform this space into a beautiful, welcoming park for all of Plaquemines Parish.

With the ribbon now cut, The Park on Avenue A is officially open to the public. This new park is more than just green space, it's a gathering place where residents can play, connect, and build community. And this is only the beginning. As community needs grow and evolve, parish leadership looks forward to making continued improvements and adding additional amenities so the park can serve families for many years to come.

To the people of Plaquemines Parish, thank you. You are truly the best community to live and play in, and the success of The Park on Avenue A is a reflection of your support and spirit. And a huge thank you to Dragonfly Media for capturing the day with an awesome video, preserving the memories of this special moment for everyone to enjoy.

See you at The Park on Avenue A!

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Riding the Emotional Roller Coaster of Buying a Home

Buying a home can feel like an emotional roller coaster. Along the way, buyers discover what they truly value, what they can live without, and how much stress they're willing to endure to get the right place.

Consider one young family's story.

In the summer of 2021, they were exhausted from renting in Florida. In their market, even a modest house cost close to $500,000, and anything cheaper needed serious work. Instead of overextending themselves, they moved to the Midwest, where their budget went much further.

They purchased a 1985 home that felt like a time capsule. With the help of the in-laws, both financially and practically, they updated the property, modernized the design, and improved its functionality.

Now, with a baby girl on the verge of crawling and their small home starting to feel tight, they're seeing some of the missteps they, and many first-time buyers, tend to make. Their experience highlights several practical lessons for anyone preparing to buy a home.

Lesson 1: Build a clear buyer profile before you shop

Real estate agent and broker Scott Harris, author of The Pursuit of Home: A Real Estate Guide to Achieving the American Dream, emphasizes that preparation should come before browsing listings. He often observes that buyers "spend more time planning their vacations than planning what they actually want in a home."

This family had an advantage many buyers don't: a retired real estate agent in the family guiding them through the process. What they didn't have, however, were the tougher conversations about values, priorities, and non-negotiables. They made a good purchase overall, but the lack of early clarity on space needs is now catching up with them.

The takeaway: Before touring homes, buyers should define a clear "buyer profile." That means:

If purchasing as a couple, each person articulates what they value most (location, space, schools, yard, finishes, commute, etc.).

They then agree on where they're willing to compromise, and where they're not.

As Harris puts it, both parties need to "row together," especially when the market is competitive or stressful.

For single buyers, the principle is the same, but the support looks different. Instead of a spouse, they may need a trusted "cheerleader", who is a friend or family member who supports the process rather than constantly second-guessing it. The goal is to create a realistic expectation framework before emotions and urgency begin to cloud judgment.

Lesson 2: Be selective about your real estate agent

A buyer's choice of real estate agent can shape the entire experience. A good agent listens, educates, sets expectations, and negotiates assertively. A poor one can make an already stressful process feel chaotic or adversarial.

In this family's case, their agent was a relative who knew both the area and their needs. That minimized one major risk. However, as they think about moving again, this time away from their current town, they know they won't have that built-in advantage. They'll need to approach the agent selection process more intentionally,

The takeaway: Buyers shouldn't treat choosing an agent as a formality. Instead, they should:

Interview at least two or three agents. This gives buyers a chance to compare communication styles, market knowledge, and strategy.

Prepare questions ahead of time. Couples can create the list together to ensure they're aligned on what they expect. Solo buyers can ask a trusted friend to review their questions and help spot red flags.

Clarify expectations early. Topics might include how often the agent communicates, how they handle negotiations, how they approach bidding wars, and whether they're willing to say "walk away" when something feels off.

The relationship with an agent should feel collaborative and transparent from the start. If it doesn't, buyers are better off finding someone else before they're deep into the process.

Lesson 3: Know when to walk away before emotions take over

The homebuying process can be emotionally draining, especially in a competitive market. Even when buyers do everything "right," they may lose out on multiple homes before they finally get one.

This family placed several offers before landing their house. Each rejection was discouraging, and over time, desperation began to creep in. That's a familiar turning point for many buyers: the temptation to compromise on core needs or wildly overbid just to "win."

Harris encourages buyers to notice that feeling and take it seriously. He notes that a significant percentage of winning bidders later walk away from deals, often after reality sets in. That alone reveals how easy it is to overreach when emotions are high.

The takeaway: Emotions shouldn't drive the final decision. A few practical guardrails can help:

If buyers keep viewing homes and nothing feels right, it may be a sign they're not emotionally or financially ready yet.

If a home only feels appealing because they're tired of losing out, that's a red flag.

If something feels wrong in their gut such as inspection issues, seller behavior, or price creep, they should be willing to step back, even if it's painful in the moment.

Harris also warns that many buyers end up overpaying in hot markets because they push too hard just to get a deal done. Pausing, cooling off, and revisiting the original buyer profile can prevent costly regret.

The bigger picture: Grounded decisions make for better homeownership

Buying a home should be an exciting milestone, not a trauma to recover from. But that outcome rarely happens by accident. It comes from:

Doing the homework before touring homes

Having honest conversations about space, budget, and priorities

Choosing an agent who truly understands and advocates for the buyer

Staying willing to walk away, even from a house that feels like "the one," when the numbers or circumstances don't add up

The young family who bought that 1985 Midwestern home doesn't regret their purchase, but they do see more clearly what they'd do differently next time. Their experience serves as a reminder: the best homebuying decisions are made before the offer is written, not during the rush of trying to beat the competition.

When buyers are clear, aligned, and supported, they're less likely to let emotions hijack the process, and far more likely to end up in a home that actually fits their lives, not just their feelings in the moment.

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Copy of Smart Mortgage Moves with a Fed Rate Cut on Deck

The Federal Reserve is back in the spotlight this week for the first time since July, and this meeting is different from the rest.  We will see a rate cut, which we have not seen since December, 2024.

That's a big shift for homebuyers who've spent the last few years watching mortgage rates spike, retreat a bit, then spike again. Recently, though, borrowing costs have been trending down. Thirty-year mortgage rates slid through the summer and, by September, had fallen to their lowest levels in nearly a year. A formal Fed cut could add a little more downward pressure.

But this rate environment is anything but predictable. If you're thinking about buying in the coming weeks or months, you can't just cross your fingers and hope the Fed hands you the perfect rate. You need a game plan.

Here's how to approach mortgages in this kind of market without getting trapped by wishful thinking.

The average 30-year mortgage rate recently dipped to about 6.35%. No, that's not the dreamy 3% range buyers saw earlier in the decade, but it can be workable if the payment genuinely fits your budget.

The key is to reverse your thinking: you're not chasing the lowest possible rate; you're trying to lock in a loan you can comfortably afford if nothing unexpectedly goes your way.

Recent history is a good reminder. When the Fed signaled easing last September, mortgage rates dropped sharply, and then climbed again, starting 2025 back above 7%. Anyone who waited, convinced that "lower" would automatically become "much lower," watched their window close.

If you're staring at a rate today that allows you to buy a home you actually like at a payment that doesn't strain your finances, it's worth seriously considering a rate lock. You can always refinance later if the market hands you something better. What you don't want is to pass on a workable deal, only to see rates jump and both your monthly payment and home choices get worse.

Yes, the Fed is likely to cut. Yes, that might help mortgage rates. But "might" is the operative word.

Mortgage rates are driven by more than just Fed policy: the 10-year Treasury yield, inflation expectations, economic data, and investor sentiment all play a role. Sometimes those forces move in unison with the Fed; sometimes they don't. Betting your home search on a straight-line slide in rates is how people end up sitting out good opportunities.

There's another problem with waiting for "just a bit lower": the housing market doesn't move in perfect sync. The home you like today may be gone by the time you decide rates are finally acceptable. And when rates fall even modestly, more buyers tend to wake up at the same time, which can push prices and competition higher. You can easily end up paying more for the house even if the rate is slightly better.

So it's reasonable to hope for lower rates. It's dangerous to depend on them.

In any market you should be shopping lenders. In a rate-cut environment, it's non-negotiable.

Different lenders react to Fed moves and broader market changes in different ways. Some will price in a likely cut early and already be offering more aggressive rates. Others will wait to see how markets settle after the announcement, or be slower to pass along improvements. That means two borrowers with identical profiles can see noticeably different offers on the same day.

You won't know who's being competitive unless you look.

Get quotes from a mix of banks, credit unions, online lenders and, if you're open to it, through a mortgage broker who can gather multiple wholesale offers for you. Make sure you're comparing the same loan type and terms each time, these include the same down payment, same product,  and same rate-lock period, so the numbers are apples to apples.

And don't fixate solely on the rate. Closing costs, discount points, lender fees, and the quality of underwriting all matter. A supposedly "lower" rate that comes with thousands more in fees or a chaotic closing process may not be the best deal once you do the math.

The "normal" mortgage most people think of is a 30-year fixed-rate loan but it isn't your only option. In a choppy rate environment, exploring alternatives can be the difference between stretching painfully and buying comfortably.

Adjustable-rate mortgages (ARMs) often start with a lower initial rate than a 30-year fixed. For buyers who expect to move or refinance within the first 5–7 years, that lower intro rate can be a real advantage. The trade-off is obvious: after the fixed period, the rate resets based on an index, and your payment can climb. If you're going to consider an ARM, you need a realistic timeline for how long you'll stay in the home and a clear understanding of worst-case payment scenarios when the rate adjusts.

Another lever is mortgage points. By paying extra upfront at closing, you can "buy down" your rate for the entire term of the loan. Sometimes combining strategies, for example, negotiating seller-paid points and choosing a structure that fits your plans, can produce a more affordable, long-term payment than just taking the first 30-year fixed quote you see.

None of these tools are magic, and they come with complexity. That's exactly why you should be talking through scenarios with a loan officer you trust, instead of assuming the default product is automatically best.

With a likely Fed cut on deck and mortgage rates already off their highs, the coming months could offer a real opening for buyers who are prepared,  but on the other hand, a trap for those who are simply guessing.

You don't control the Fed, the bond market, or the economy. You do control whether you've run the numbers on what you can safely afford, whether you've compared multiple lenders, and whether you're making full use of the tools available which includes locks, points, alternative loan structures, rather than just waiting for the universe to hand you a dream rate.

If you find a home that fits your life and a mortgage you can carry without losing sleep, locking it in now and leaving the door open to refinance later is often a more rational strategy than chasing some hypothetical, perfectly timed bottom. In a volatile rate climate, "solid and sustainable" usually beats "perfect and imaginary."

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