12/26/2025
December 2025 Cup 'O Joe Espresso Market Update
Hey Everyone,
It’s a short week and though there’s lots to cover in the world of real estate(as always), we try to focus updates on specific issues. Two purposes for this email;
First, some updates on the current market.
Although the Northeastern PA and Northwestern NJ markets do not necessarily reflect current national trends, in general we appear to be moving (slowly) in the same direction with some things (e.g. slowing of price increases) and not with others (e.g. actual price drops, change or movement towards a Buyer’s market, etc.), but of course dependent on the specific area.
As to the mortgage rates, we’ve covered what factors (T-Notes, MBS, CPI, Fed rate change, etc.) influence rates offered by lenders, including ultimately, your specific financial situation. Be aware that the Holidays are a time when mortgage rates can drop and fall for other than typical factors such as reduced trading volume and slower buyer demand, so take numbers during this period with a grain of salt.
Though we have seen drops in the mortgage rate as recent as last week when the Fed’s rate drop announcement precipitated another ¼ point drop in national mortgage rates (lowest rates since October, 3rd rate drop since September), most experts contend we will likely not see an addition to that momentum over the next 2 weeks; “During that time, the bond market will be fully closed for 2 days, partially closed on 2 days, and much lighter in volume and participation for the rest of the time. This can lead to random, small-scale volatility but it rarely results in lasting momentum. For that, we'll be waiting until the major econ data begins coming out in January--most notably the Jan 9th jobs report.” MND 12/22/25
The Labor Department reported yesterday that inflation had retreated to 2.7%, and this lower-than-expected inflation could allow mortgage rates to fall further, but most experts believe that rates will stay above 6% in the coming months. How has the rate drop(s) affected buyers? Per Lisa Sturtevant, chief economist at Bright MLS, “…even with a dip in mortgage rates, home prices are still rising in many places, and affordability is still a major constraint,” and “Anxiety over job security and prices of goods and services has made some buyers hold back.” Bankrate 12/22/25
So what do Sellers and Buyers do now? First, look past the Holidays. If you’re selling and have reduced activity, hold tight until after the 1st. If you’re buying, perhaps most importantly, don’t let the Holiday fever make you do something to change your overall financial picture.
We were hard-pressed to find any economists guaranteeing any further rate drop in 2026. Quite the contrary, most are very cautious in their analysis; e.g. “I expect mortgage rates to decline slightly by the end of the year, though likely not enough to provide significant relief for borrowers, and the path down may be bumpy. The future of mortgage rates remains uncertain, as it will depend on new information and how the markets interpret it.” Zillow Home Loans senior economist Kara Ng
Lastly, it’s essential to compare rates and terms among the best mortgage lenders to find a deal that fits your unique situation. Remember that although they all look at the same data, each lender makes independent decisions on what rates to offer borrowers.
If you’ve worked with me you’ve likely heard me say it…Don’t just call one lender!
Then, have them work for you.
Find a lender that gives the best rates and service based on your needs.
Nuff said.
Now to the fun stuff. Below are some resources if you’re looking for things to do locally during the Holiday season in PA. My apologies to the NJ folks, I’ll try to get that together for next time, but you’re welcome in PA for the Holidays!
Be safe, be happy, and share yourselves with people you love. My family and I wish you the very best this Holiday, and in the years to come.
Holiday Events and Resources
Lehigh County offers a festive holiday scene with major attractions like Bethlehem's Christkindlmarkt, Easton Winter Village, and Allentown's Lights in the Parkway drive-thru, alongside zoo light shows, historic tours, carriage rides, and unique events at SteelStacks, featuring a mix of markets, lights, music, and family fun running through late December and into early January.
Major Light Displays & Markets
Christkindlmarkt Bethlehem: A famous German-style market with wooden huts, artisans, food, and entertainment.
Easton Winter Village: Features an ice-skating rink, shopping huts in Centre Square, and festive atmosphere.
Lights in the Parkway (Allentown): A popular drive-through light show in Allentown's Parkway.
Winter Light Spectacular (Lehigh Valley Zoo): Millions of lights, animated displays, music, and character encounters.
Historic & Cultural Events
Trees of Historic Bethlehem: Over 20 decorated trees at historic sites, part of the Christmas City celebration.
Christmas City Stroll/Tours: Guided tours, horse-drawn carriage rides, and historic site visits in Bethlehem.
Central Moravian Putz: A traditional Moravian Christmas display.
Family & Unique Activities
Crayola Experience Colorful Christmas: Festive fun in Easton.
Holiday Train Display: At the America On Wheels Museum.
SteelStacks Events: Offers holiday shows, brunches, and NYE celebrations (e.g., PEEPSFEST®).
Becky's Drive-In Holiday Lights: A drive-in light experience
Berks County offers festive holiday events like the spectacular lights at Koziar's Christmas Village and Berks County Parks' Holiday Lights at Gring's Mill, plus special activities such as Santa Train Rides on the Blue Mountain & Reading Railroad, holiday bazaars, craft workshops, and festive concerts, with ongoing events extending into the New Year at places like Hagg's Life Outdoors.
Major Light Displays
Koziar's Christmas Village: A must-see winter wonderland with stunning lights, music, and hot cocoa, open nightly through the holidays.
Holiday Lights at Gring's Mill: Check the Berks County Parks and Recreation calendar for dates and times for this popular display.
Family-Friendly Activities
Santa Train Rides: Enjoy carols, cookies, and Santa on the Blue Mountain & Reading Railroad.
Holiday Bazaars & Markets: Find unique gifts and food at local craft fairs and markets, often featuring live music and kids' activities.
Heritage Train Room: Visit The Heritage of Green Hills for their elaborate train display and holiday treats (check for 2025 dates).
Music & Arts
Concerts: Look for holiday jazz at the Miller Center for the Arts or classical performances like the Ringgold Band's Christmas Concert in Exeter Township.
Workshops & Classes: Find creative fun with pop-up painting and holiday craft workshops at places like Hagg's Life Outdoors.
New Year's Eve
Festivities: Check local listings for fireworks, live music, and parties in downtown Reading or venues like The Dime and Go 'N Bananas (for kids).
If you go to an event, drop me a note, let me know how it was, and you can even send a pic for me to post on social media.
Happy Holidays!
Stu
