Each week, I analyze the evolving dynamics of the market, identifying emerging trends, shifts in momentum, and key considerations for real estate professionals. Last week, ATTOM released its Q3 2025 U.S. Home Sales Report, highlighting continued strong profitability for home sellers, with average margins remaining close to 50%, well above the pre-2020 norm of approximately 30%. In October, builder confidence strengthened notably, reaching its highest level since April, as all components of the National Association of Homebuilders Housing Market Index posted gains. Additionally, the average 30-year fixed mortgage rate reached one of its lowest levels since late 2022, signaling favorable financing conditions.
Below are key events from the second week of October impacting our business.
October 20, 2025
HOME SALES PROFITS UP IN THIRD QUARTER TO NEAR 50 PERCENT MARGIN. In Q3 2025, ATTOM reported that U.S. homeowners earned a 49.9% profit on typical single-family home and condo sales, slightly above the previous quarter but below the 55.4% margin seen in Q3 2024. Prior to 2020, home sellers saw profit margins of around 30%. The median national sales price rose to $370,000, marking a 1.2% quarterly and 3.4% annual increase. Average raw profit reached $123,100, up 1.9% from Q2 but down 3.5% year-over-year. While profits remain below pandemic-era highs, they continue to reflect a resilient market supported by rising prices, steady demand, and easing mortgage rates. Full story from ATTOM →
- Why this Matters: For sellers, the sustained profit margins of nearly 50% indicate continued strong returns, suggesting favorable conditions for listing properties despite a slight decline from peak pandemic levels. Rising home prices and steady demand, coupled with moderating mortgage rates, contribute to a stable environment that supports seller profitability. For buyers, the upward trend in median home prices underscores the importance of acting strategically, especially as affordability remains a key concern. The data suggests that while the market is no longer at its peak, it remains competitive. Understanding these trends can help buyers make informed decisions about timing, financing, and negotiating purchases in a market that continues to show resilience.
AMID MARKET CHALLENGES, BUILDER EXPECTATIONS RISE IN OCTOBER. Builder sentiment improved notably in October despite ongoing economic challenges, with the NAHB/Wells Fargo Housing Market Index rising to 37, marking its highest level since April. All subindices saw gains: current sales conditions increased four points to 38, future sales expectations climbed nine points to 54, surpassing the 50-point breakeven threshold for the first time since January, and buyer traffic rose four points to 25. Full story from EYEONHOUSING →
- Why this Matters: The October uptick in builder sentiment is a meaningful indicator for both homebuyers and sellers. For buyers, improved confidence among builders suggests a potential increase in new home construction, which could expand inventory and offer more choices in the market. The rise in future sales expectations signals optimism about demand, potentially stabilizing prices and encouraging more favorable purchasing conditions. For sellers, stronger builder sentiment reflects a healthier housing market outlook, which may support sustained buyer interest and competitive pricing. Increased buyer traffic and improved sales conditions point to continued momentum, reinforcing the appeal of listing properties while market activity remains robust.
RATES HOLD STEADY JUST ABOVE 3 YEAR LOWS. The average top-tier 30-year fixed rate was unchanged on Friday despite the bond market being slightly weaker. By remaining unchanged, the average rate is officially in line with the lowest levels in just over a month. Apart from that, there are only a handful of days with lower rates going all the way back to late 2022. According to Freddie Mac, the 30-year fixed rate mortgage averaged 6.27%, down from the prior week when it averaged 6.30%. A year ago at this time, the 30-year fixed-rate mortgage averaged 6.44%. Full story from MORTGAGENEWSDAILY →
- Why this Matters: The stability of the 30-year fixed mortgage rate at 6.27%, its lowest level in over a month, holds meaningful implications for both homebuyers and sellers. For buyers, steady or slightly declining rates enhance affordability and improve purchasing power, potentially making homeownership more attainable amid rising home prices. This environment may also encourage buyers to act sooner, anticipating future rate fluctuations.
For sellers, lower mortgage rates can stimulate demand, leading to increased buyer activity and potentially faster sales at competitive prices. As rates remain near multi-month lows, the market may benefit from renewed momentum, supporting favorable conditions for both sides of the transaction.
THE BOTTOM LINE: In today’s dynamic market landscape, maintaining clarity amid volatility is critical. It is imperative to offer steady leadership, deliver actionable guidance, and empower clients with timely, data-driven insights that enable confident and informed decision-making.
Disclaimer: this is a compilation of industry news from trade media and industry groups; it does not share any forward-looking predictions or projections.
