As of November 2025, home sales are significantly below pre-pandemic levels, however, simultaneously, mortgage rates are in decline. So why is it the case that the U.S. housing market is stuck in this stalemate? The question is answered in episode thirty-eight of the RiskWire Webcast! Chief Economist, Eric Fox, and Sr. Research Economist, Reena Agrawal explore why this is the case, offering numerous perspectives and possible solutions as to why the housing market is in a stalemate.
Here are a few highlights from the episode:
- Affordability remains a major barrier despite mortgage rates dropping. This is because home price increases have made homes “unbelievably expensive.”
- Veros’ Economists believe that a 5% mortgage rate is the magic number. It is the point in which the market will unfreeze, thus allowing a substantial number of current homeowners to sell their home, and potential buyers to enter the market. However, they do not expect that number to be reached anytime soon.
- With the labor market currently softening, it is causing buyers to choose stability over risk when making major life decisions, while they wait for more economic clarity.
Looking for a more in-depth analysis about the current state of the housing market? Watch episode thirty-eight of the RiskWire Webcast: Webcast & Interviews – RiskWire, powered by Veros
For additional information about the housing market or economic trends, visit RiskWire.com now! Also, don’t forget to listen to the RiskWire Podcast on your preferred channel: Apple Podcasts, Spotify, and YouTube Podcasts.
