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What happened in the housing market for September, 2025? A rate cut fail unfolded as a resumption of rate cuts by the Federal Reserve failed to revive the stocks of homebuilders. This market reaction suggests that housing market data will remain soft for some time to come.

Here is a summary for September’s market data:

• The stocks of home builders are precariously teetering on a return to bear market territory.
• While home builder sentiment remains just above historic lows, a measure future sales expectations showed some fresh signs of life.
• Single-family housing starts continued to decline well below the 1M level, setting up a stark contrast with the small improvement in future sales expectations.
• Sales of new single-family homes surged but will likely incur downward revisions.
• Existing home sales continues to bounce along the lows of the last year or so.
• California’s market for exiting homes may have reached a (unstable?) balance between supply and demand.
• Besties are increasingly partnering to buy homes as a way of coping with affordability challenges.
• Mortgage rates fell to a near one-year low.

More details in the video below:

Video Length: 00:15:43

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