10/06/2026
🏡📊 MORTGAGE & HOUSING MARKET UPDATE
It used to be that softer inflation and weaker employment data would push bond yields—and mortgage rates—lower. Not this time.
The housing market continues to feel the pressure of high home prices and elevated mortgage rates, while bond yields have continued climbing.
📉 MORTGAGE DEMAND IS FALLING
For the week ending September 25:
🏠 Purchase applications: -4.3%
🔄 Refinance applications: -8.7%
📊 Total mortgage applications: -6%
Purchase applications have now declined for 4 consecutive weeks, while refinance activity has fallen for 6 straight weeks.
With fixed mortgage rates near their highest levels in nearly three years, buyers may need to consider more financing options—including adjustable-rate mortgages.
🏦 WHAT ABOUT THE FED?
Interestingly, expectations for another immediate rate hike have cooled.
📉 Odds of a quarter-point hike this month have fallen from 64% to just over 20%.
December remains a different story, with markets currently assigning about an 85% chance of a quarter-point increase.
So while the Fed may be less likely to raise rates immediately, that doesn’t necessarily mean mortgage rates will fall.
📈 MORTGAGE RATES REMAIN UNDER PRESSURE
Long-term bond yields continue to rise, and those yields have a major influence on mortgage rates.
Based on recent market movement, the average 30-year fixed mortgage rate could rise another 7–9 basis points this week.
🔑 THE BIG TAKEAWAY
The housing market is still facing a difficult combination of:
📈 Higher mortgage rates
🏠 Elevated home prices
📉 Declining buyer demand
📦 Changing inventory levels
But real estate is local. National headlines don’t tell the entire story of what’s happening in Michigan communities.
If you’re thinking about buying or selling, let’s look at your local market and your options rather than relying on the headlines.
📞 586.354.7716
📧 [email protected]
🏡 Thero Realty
Real Advice. Real Results. Real Estate.
