Wealth Building Through Real Estate

September 15, 2025 • Finance

Hosted by Dusty

About This Episode

Generated finance podcast with host Dusty based on prompt: Weekly Residential Real Estate updates with focus on long term wealth via real estate.

Transcript

Hello everyone, and welcome to "Wealth Building Through Real Estate.” I’m your host, Dusty. Today, we’re diving into the evolving landscape of mortgage rates, the housing market, and how these changes might just open doors for savvy real estate investors.

Let's start with a quick market overview. Recently, we saw a notable drop in the average rate on a 30-year fixed U.S. mortgage, which has fallen sharply to around 6.35%. That's the lowest it’s been in nearly a year. This dip aligns with eased Treasury yields and whispers of a potential Federal Reserve rate cut soon. For buyers and refinancers, it means better borrowing conditions and a potential nudge to take action.

This drop in rates sparked a wave in mortgage applications, with overall activity rising by 9.2%. Refinancing applications surged by 12.2%, while purchase-loan applications climbed by 6.6%. Seems like buyers who were holding back are slowly returning, encouraged by these improved conditions.

On the supply front, we’re seeing some intriguing shifts. The number of homes actively for sale jumped by 18.4% year-over-year. However, new listings dipped slightly, suggesting that the increase in available homes is due to unsold inventory rather than new sellers entering the market. This has led to a 0.9% decline in the median listing price, offering more choices and potentially better deals for buyers.

Homes are taking longer to sell, averaging six more days on the market than this time last year. The pace of price growth is also cooling down, with only a modest 0.5% month-over-month rise in September. Annually, price growth stands at around 6%, the smallest increase since late 2024. All these factors together hint at a market gradually adjusting and offering a more balanced playing field.

In terms of regional dynamics, some metros like Cleveland, St. Louis, and Cincinnati are shifting into buyer’s-market territory. Meanwhile, the Midwest remains vibrant with homes selling quickly, thanks to affordable prices and steady employment. The dip in mortgage rates could give buyers even more leverage in these fast-moving markets.

Now, let’s talk about the bigger picture—the long-term wealth implications. Real estate has long been a stable, inflation-hedged investment. Despite the fluctuations in rates, the S&P CoreLogic Case-Shiller Index reported a 3.4% annual gain in March 2025. Even with price growth slowing to 2.7% in April, homeowners’ equity climbed to a record $17.6 trillion. This substantial equity serves as a financial cushion for future investments or renovations.

With rates at multi-month lows, elevated inventory, and easing price pressures, now might be the perfect time for long-term buyers. Locking in financing now could set the stage for significant benefits over the next decade, supported by strong demographic-driven demand and rental income potential.

As we wrap up, remember that real estate is not just about buying and selling; it’s about strategic timing and understanding market rhythms. And as always, when the dust settles, only the truth remains. Thanks for tuning in. Until next time, take care and stay informed.

## Weekly Mortgage Rate and Lending Conditions
The average rate on a 30-year fixed U.S. mortgage fell sharply to around 6.35% for the week ending September 11, 2025, down from approximately 6.50% the prior week and marking its lowest level in nearly a year. This decline reflects easing Treasury yields amid growing market expectations of a Federal Reserve rate cut later this month and has already translated into improved borrowing costs for prospective buyers and refinancers ([apnews.com](https://apnews.com/article/0006ffb29d80352c87da5b2b5b08e8fa?utm_source=openai)).

Mortgage application volumes responded quickly to the drop in rates. According to the Mortgage Bankers Association (MBA), overall application activity rose by 9.2% in the week ending September 5, driven by a 12.2% surge in refinancing applications, which now account for roughly 26% of all applications ([carringtoncorrespondent.com](https://www.carringtoncorrespondent.com/2025/09/13/weekly-housing-headlines-47/)). Meanwhile, purchase‐loan applications climbed by 6.6%, indicating that some buyers who had been sidelined by earlier rate spikes are beginning to re-enter the market ([reuters.com](https://www.reuters.com/business/us-30-year-mortgage-rate-slides-11-month-low-mba-data-shows-2025-09-10/?utm_source=openai)).

Mortgage credit availability also ticked up in August, according to MBA’s Credit Availability Index, as lenders slightly eased standards for adjustable-rate and jumbo products. While overall credit conditions remain tighter than pre-pandemic levels, the modest loosening, combined with lower benchmark rates, is likely to support incremental improvements in home lending activity heading into the fall ([carringtoncorrespondent.com](https://www.carringtoncorrespondent.com/2025/09/13/weekly-housing-headlines-47/)).

## Supply and Listings
Inventory conditions continue to shift decisively in favor of buyers. For the week ending September 6, 2025, the total number of homes actively for sale jumped by 18.4% year-over-year, representing the largest annual gain in available listings since before the pandemic ([activerain.com](https://activerain.com/blogsview/5904611/weekly-housing-trends-for-september-6--2025?utm_source=openai)). New listings over that same period, however, declined by 1.9% year-over-year, suggesting that much of the inventory increase results from lingering unsold homes accumulating on the market rather than a fresh surge of sellers ([activerain.com](https://activerain.com/blogsview/5904611/weekly-housing-trends-for-september-6--2025?utm_source=openai)).

As a result of the higher inventory, the median listing price fell by 0.9% compared with the same week a year ago, marking one of the few declines in median asking prices since mid-2023 ([activerain.com](https://activerain.com/blogsview/5904611/weekly-housing-trends-for-september-6--2025?utm_source=openai)). This downward adjustment in list prices, coupled with growing buyer choice, has begun to chip away at the tight market conditions that propelled rapid price growth during the pandemic.

## Price and Market Dynamics
Homes are taking noticeably longer to sell. The typical property spent an average of six more days on the market compared to the same week in 2024, underscoring buyer patience amid broad inventory growth and improved affordability expectations ([activerain.com](https://activerain.com/blogsview/5904611/weekly-housing-trends-for-september-6--2025?utm_source=openai)). Price growth, which had accelerated through much of 2024 and early 2025, has now moderated: median home-sale prices nationally rose just 0.5% month-over-month in September, the fastest monthly gain since April but still down from the double-digit pace seen during the peak of the surge ([investors.redfin.com](https://investors.redfin.com/news-events/press-releases/detail/1196/redfin-reports-u-s-home-prices-grew-0-5-in-september-the?utm_source=openai)).

Despite these modest upticks in price, annual home-sale price growth remains tempered at around 6%, the smallest year-over-year increase since December 2024, reflecting the influence of higher borrowing costs over the past year and gradually rising inventory levels ([investors.redfin.com](https://investors.redfin.com/news-events/press-releases/detail/1196/redfin-reports-u-s-home-prices-grew-0-5-in-september-the?utm_source=openai)).

## Regional Highlights
While the national housing market has slowed, certain metros continue to defy the trend. Realtor.com data show that seven of the 50 largest U.S. metros have shifted into buyer’s-market territory, including key markets such as Cleveland, St. Louis, and Cincinnati, where listings now exceed 6 months of supply ([carringtoncorrespondent.com](https://www.carringtoncorrespondent.com/2025/09/13/weekly-housing-headlines-47/)).

Conversely, half of the fastest-moving housing markets are clustered in the Midwest, where more affordable price points and steady employment conditions have kept homes selling quickly; properties in these metros spend fewer than 30 days on the market on average ([carringtoncorrespondent.com](https://www.carringtoncorrespondent.com/2025/09/13/weekly-housing-headlines-47/)). However, even in these tighter markets, the recent pullback in mortgage rates has provided buyers with additional negotiating leverage, mitigating some of the demand pressures seen earlier in the year.

## Long-Term Wealth Implications
Residential real estate historically delivers stable, inflation-hedged returns, and current market conditions are presenting selective buying opportunities for long-term investors and owner-occupants alike. As of March 2025, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index recorded a 3.4% annual gain, with the 10-City and 20-City composites up 4.8% and 4.1%, respectively—affirming that, even amid rate fluctuations, home values continue to appreciate over the long run ([spglobal.com](https://www.spglobal.com/spdji/en/index-announcements/article/sp-corelogic-case-shiller-index-records-34-annual-gain-in-march-2025/?utm_source=openai)).

Annual price growth slowed further to 2.7% through April 2025, the smallest increase in nearly two years, signaling a gradual market recalibration that supports more balanced conditions and deeper market entry points for wealth building ([wsj.com](https://www.wsj.com/economy/housing/u-s-home-prices-cool-to-near-two-year-low-f032ed64?utm_source=openai)). Moreover, homeowners’ equity reached a record high—exceeding $17.6 trillion—providing a substantial equity buffer and wealth reservoir for mortgages, renovations, or future investment property acquisitions ([barrons.com](https://www.barrons.com/articles/home-prices-climbing-home-depot-stock-winner-afa72c32?utm_source=openai)).

With mortgage rates now at multi-month lows, inventory elevated, and price pressures easing, the current window affords potential long-term buyers the rare convergence of affordability and selection. Over the next decade, those who lock in financing and capitalize on stabilized prices stand to benefit from continued demographic-driven demand, rental-income potential, and historically resilient real estate returns.

Wealth Building Through Real Estate