November Market Report: A Rush to Close Before the Holidays

Affordability is finally turning a corner for homebuyers. As mortgage rates ease and wages continue to rise, buyers are gaining a bit more breathing room — just in time for a late-year push to close before the holidays.

Affordability improves as wages outpace payments

Stat: A typical buyer with 20% down spent about 2% less of their income on housing in October compared to a year ago. 

Affordability finally tilted toward buyers this fall when rates dipped just as wages kept climbing. That shift shows up in buyer budgets.

“You can feel it at the pre‑approval desk,” says Zillow Senior Economist Kara Ng. “Shoppers who paused in late summer can re-run numbers now.”

For buyers waiting until next spring, saving for the down payment is nudging easier too, as long as incomes continue to outpace housing costs.

Takeaway: Buyer reps with price-sensitive shoppers can advocate for Zillow Home Loan’s BuyAbility℠ tool early and often. Any rate fluctuation in this volatile policy environment can mean big changes for what they can afford.

Many buyers push to close before the holidays

Stat: Home sales are up 5.6% since last month and 6.7% compared to last year, according to Zillow’s October early estimate.

Rates blipped lower in mid‑October, and since then have partially rebounded after the Fed’s cautious guidance. The window mattered: activity flickered up. The Purchase Index on November 12 increased 3% from the previous week and 31% since the same week one year ago.

Buyers have also had more options to consider. New listings were up 5% from last year, and active inventory ended October at up 12.8% YoY. 

Takeaway: Buyer agents can lean on credits and buydowns to get deals signed before the holidays hit. Clients on the fence may need reminding that — as we’ve seen with recent cuts — there’s no guarantee that mortgage rates will improve with the Fed decision in December; there’s also no guarantee there’ll even be a cut.