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75 September 2025 J O U R N A L themortgagepoint.com September 2025 » Dr. Lisa Sturtevant. "But it is too early to call the market a buyer's market. Instead, we are in a 'stuck' market, which is likely where we will stay as we head into fall. Sellers are feeling stuck because they are not getting the offers they want. Bright MLS's recent analysis found that a key reason sellers are delisting their homes is that their price expectations are not being met. Buyers are feeling stuck because, although there is more inventory, home prices are still high, and affordability is still a hurdle." July's Realtors Confidence Index survey shows that 16% of NAR mem- bers expect an increase in buyer traffic over the next three months, a number unchanged year-over-year. Meanwhile, 21% expect an increase in seller traffic, up from 17% reported in July 2024. "Rising mortgage applications for home purchase are an early indicator of more serious buyers in the marketplace, though many have not yet committed to a pending contract," added Yun. "The Federal Reserve signaling that they may enact a lower interest rate policy should steadily enlarge the pool of eligible home buyers in the upcoming months." At a recent economic symposium sponsored by the Federal Reserve Bank of Kansas City, Federal Reserve Chair Je- rome Powell suggested that an unsteady labor market could benefit from lower rates. "Putting the pieces together, what are the implications for monetary pol- icy? In the near term, risks to inflation are tilted to the upside, and risks to employment to the downside—a chal- lenging situation," said Powell during an address at the Jackson Hole, Wyoming symposium. "When our goals are in tension like this, our framework calls for us to balance both sides of our dual mandate. Our policy rate is now 100 basis points closer to neutral than it was a year ago, and the stability of the unem- ployment rate and other labor market measures allows us to proceed carefully as we consider changes to our policy stance. Nonetheless, with policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance." Mortgage rates continue to tick downward, falling to a 10-month low, as Freddie Mac reported that the 30-year fixed-rate mortgage (FRM) averaged 6.56% as of August 28, 2025, down from the previous week when it averaged 6.58%. A year ago at this time, the 30- year FRM averaged 6.35%. "Looking forward, pending home sales tend to lead existing home sales by roughly one-to-two months and are a good indicator of market conditions," said Krimmel. "Existing home sales bounced back slightly in July, but could well revert to trend soon. New home sales fell 8.2% year over year, even as the new-construction premium has dipped to historic lows. In anticipation of a Fed rate cut in September, recent drops in mortgage interest rates to 10-month lows may be enough to pull some buyers off the sidelines, with all eyes on a potential rebound in mortgage applications." HOMEOWNERSHIP OUT OF REACH: AFFORDABILITY WORSENS FOR FIRST-TIME BUYERS A lthough the U.S. housing market appears to be improv- ing, many Americans believe that the market has stagnated. The most recent report from Realtor.com, "Cruel Summer: Why the U.S. Housing Market is Stuck," explains why buyers, sellers, and builders all face unique difficulties, and why they are all bound together by shared frustration. "The housing market is caught in a collective slowdown, touching everyone from buyers to sellers to builders," said Jake Krimmel, Senior Economist at Realtor.com. "Despite facing different pressures, each group is reacting the same way, with hesitation and retreat. The result is a market that can't gain meaningful traction. That being said,