Mortgage rates have eased to their lowest level in over a year, bringing a welcome boost to affordability and giving more buyers the confidence to re-enter the market. Still, pending home sales remain just below last year’s pace as economic uncertainty and financing challenges continue to influence timing for both buyers and sellers. Inventory has held steady near 860,000 homes—about 17% above last year—signaling a market that’s stable but cautious heading into year-end.

Affordability is improving. Mortgage rates have eased to their lowest levels in over a year—around 6.2%—giving buyers a little more purchasing power as incomes continue to rise faster than home prices. Across the country, the typical monthly payment is now about 1.5% lower than a year ago, signaling the best affordability levels we’ve seen all year.

Inventory remains steady. The number of homes for sale held near 868,000, roughly 17% above last year. While that’s a healthy level of supply nationally, much of it remains concentrated in the South and Sun Belt, while markets across the Midwest and Northeast continue to face tight inventory conditions.

Sales are inching higher. Pending sales are running 3–5% above last year’s pace, supported by improved affordability and a gradual increase in buyer confidence heading into year-end.

Prices are holding firm. The median price for new contracts sits at $399,000—2.3% higher than a year ago—with some measures, like price per square foot, starting to show small year-over-year declines. The balance between easing rates and disciplined pricing is helping stabilize the market.

Takeaway: With affordability improving and inventory steady, now is the time to start planning your next move.