Here is your real estate news for Tuesday, January 20th.
Affordability Forecast Signals Broad Relief Across Major Markets
Yesterday’s biggest national housing story came from a Zillow affordability forecast showing that 49 out of the 50 largest U.S. housing markets are expected to see housing cost relief this year, and 20 should reach key affordability thresholds. This indicates that even with still-elevated mortgage rates and price pressures, more markets may be within reach for typical buyers in 2026 — a major theme as the industry watches both price trends and buyer behavior closely.
Mortgage Costs Drop to Multi-Year Lows, Boosting Buying Power
Another major housing trend making waves yesterday was the notable decline in mortgage rates — with the average 30-year fixed rate dipping to its lowest level in nearly three years. This shift has meaningfully lowered monthly housing costs and expanded buyers’ purchasing power by roughly $14,000 compared with earlier in the year, even as inventory challenges and subdued transaction activity remain.
Mortgage Rates (January 20th, 2025):
- 30-Year Fixed-Rate: 6.07%
- 15-Year Fixed-Rate: 5.60%
- 30-Year Jumbo: 6.35%
- 10 Year Treasury Yield: 4.29%
In the competitive real estate market, staying informed is crucial for both buyers and sellers. By understanding mortgage trends, housing market shifts, and the broader economic environment, individuals can make well-informed decisions. This knowledge can lead to more effective pricing strategies, better investment timing, and smoother transactions. For buyers, tracking mortgage rates can help them secure more favorable terms, while sellers who know their local market trends can set more competitive listing prices. Overall, staying updated on these topics not only helps real estate professionals serve their clients better, but also empowers everyday buyers and sellers to achieve their property goals.
Thanks for reading,
Chris
