Status of Housing Market?

As we have seen and heard for the past few weeks, the housing market appears to be going nowhere.

There was a recent report that the interest rate drop in the past month has changed the course upward.

Well, I don’t believe that, and here is why.

Assume a mortgage of $350,000. for 30 years @6%, 6.2% and 6.4%.

The monthly payment of principal and interest would amount to the following:

6% $2,098.43

6.2% $2,143.64

6.4% $2,189.27

The difference between 6.4% and 6.2 % is only $45.63 per month, and the difference between 6% and 6.4% is only $90.84.

I believe the real issue continues to be “affordability,” based upon the cost of a new or older home. The cost has increased significantly over the past 10 years. As new home prices have increased so have older home prices.

Supply and demand has an impact also. Supply is down because those with 3%+- interest rate loans aren’t selling. Also, we are no longer a “mobile society.” Folks aren’t moving as they did 20, 30 or 40 years ago.

Is there a simple answer, no!

Jess Sweely

Madison, Va. 22727

November 24, 2025