Buyer Demand Hits Its Highest Level of the Year
Inside Lending – Week of December 8, 2025
QUOTE OF THE WEEK
“As far as I’m concerned, ‘whom’ is a word that was invented to make everyone sound like a butler.”—Calvin Trillin, American journalist and humorist
NATIONAL MARKET UPDATE
The Mortgage Bankers Association reported that last week purchase mortgage applications rose 3% week-over-week and 17% year-over-year, sending buyer demand to its highest level of the year.
Realtor.com found that the difference in the monthly cost of home ownership between new and existing homes is almost negligible—only a $30 difference in the period from July to September.
During Thanksgiving week, things finally got moving in a buyer-friendly direction. Buyers saw the weakest home price growth in over two years, and more choices, with inventory up almost 12% from last year.
REVIEW OF LAST WEEK
TWO FOR THE MONEY… The three big stock indexes all posted gains two weeks in a row, this time driven by rising expectations for another rate cut from the Fed at the FOMC confab the day after tomorrow.
The catalyst for increased confidence in a cut came with Fridays milder than expected September PCE Prices, the Fed’s favorite inflation measure, while Personal Income and Spending gains were positive for the economy.
Initial jobless claims fell to their lowest level in nearly two years. Plus, University of Michigan Consumer Sentiment rose for the first time in five months on improved expectations for inflation relief and personal finances.
The week ended with the Dow UP 0.5%, to 47,955; the S&P 500 UP 0.3%, to 6,870 and the Nasdaq UP 0.9%, to 23,578.
Bond prices cooled a bit overall, the 30-Year UMBS 5.0% dipping 7 basis points, to 99.20. Freddie Mac reports the national average 30-year fixed mortgage rate fell for the second straight week and is a half percent lower than this time last year. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information.
DID YOU KNOW… Zilllow says the typical U.S. listing in October experienced $25,000 in price cuts, “matching the biggest discounts Zillow has tracked.” High home values are allowing sellers to cut prices
THIS WEEK’S FORECAST
MORTGAGE APPLICATIONS, PRODUCTIVITY, INFLATION, THE FED… We’ll check this week’s MBA Mortgage Applications Index to see if buyer demand continues to hold. The preliminary Q3 Productivity read should show another gain, a good sign for the economy. Wholesale price inflation is forecast to moderate by the November Producer Price Index (PPI). Wednesday, everyone will be fixed on the Fed’s FOMC Rate Decision, expected to deliver a quarter percent drop.
FEDERAL RESERVE WATCH
Forecasting Federal Reserve policy changes in coming months. September’s cooler PCE inflation read has Wall Streeters all but certain of a rate cut Wednesday, but not another one for the next two meets. Note: In the lower chart, the 88.4% probability of change means there’s only an 11.6% probability the rate will stay the same. Current rate is 3.75%-4.00%.
BUSINESS TIP OF THE WEEK
Spend your time on what matters most. Look at your business this past year and see what worked—and what didn’t. Going forward, focus on those activities that delivered the best results.
If you want to understand how improving affordability, rising inventory, and the upcoming Fed decision impact your buying or refinancing plan, let’s walk through it together. A clear mortgage strategy today can save you thousands tomorrow.
📲 Call or Text: 480-553-8770 📩 kevin@kevinbrierton.com 🔗 Schedule Your Mortgage Strategy Call: www.KevinBrierton.com/Apply
Kevin Brierton Branch manager NMLS 599873 – Your No Excuse Lender.
