Thanksgiving 2025 Real Estate Update

by Elena Garrett, November 2025

Here’s a quick roundup of what’s been moving in the real estate and mortgage world as we head into the holiday season.

1. Home Sales Picked Up Again in October 2025

October marked the second straight month of growth in residential closings.
Buyers took advantage of slightly lower mortgage rates and a growing number of homes hitting the market. More inventory + modest rate relief = more completed sales.

2. Mortgage Applications Jumped Nearly 8% Before Thanksgiving

Applications to purchase a home rose 8% in the week ending Nov. 21.
Government-backed loans (FHA, VA, USDA) saw a notable spike — the strongest week since 2023.
These programs remain attractive because they allow lower down payments, including zero down options for VA and USDA buyers.

3. Zillow Forecast: Home Prices Expected to Rise 1.5% Over the Next 12 Months

Zillow’s latest projection suggests steady — not dramatic — home price growth from Oct 2025 to Oct 2026.
This indicates a stable market rather than major swings in either direction.

4. Mortgage Rate Relief May Be Slowing Down

The 30-year fixed rate is averaging around 6.19%, slightly lower than a year ago.
Economists at Fannie Mae and the Mortgage Bankers Association believe that while recent drops have helped buyers, most of the short-term rate relief has already passed.
Rates may still shift, but the steep declines from earlier months are unlikely to continue at the same pace.

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