Interest Rate Relief on the Horizon? What to Expect in Q4 2025

Recent economic data may be just what home buyers and sellers have been looking for since 2022. The US job market is showing signs of weakness, raising some fears about the health of one of the world’s largest economies as unemployment ticked up from 4.2% to 4.3% in August.

While this sounds like negative news (technically it is), it’s actually good for mortgage rates as the 10 year treasury fell substantially this week from 4.3% to 4.08% pushing mortgage rates for those with good credit and attempting to qualify for FHA loans into the 5.95-6.25% range. 

This news could place further pressure on the Federal Reserve to take action with the funds rate and while this doesn’t directly correlate with mortgage rates, it’s good news for investors, capital investment firms, and companies who are borrowing capital

to further invest in their companies. A rate cut could mean lower borrowing costs for these companies and investors and in turn create a more stable environment and job growth as we see them invest in new technology, new projects, acquisitions, and labor. 

While it may seem counterintuitive to consider unemployment rising a good thing for the housing market, it can result in lower borrowing costs, lower mortgage rates, and ultimately more sales volume as we move into a traditionally slow time of year for home sales.

If you’re a seller right now and either working with our team or another firm, this 

could stimulate some action and showings on your listings in the coming weeks. So, if you’ve been sitting on the market and struggling with showings like many sellers have been, this is good news for you.

If you’ve been waiting to buy or concerned about your monthly mortgage payments, this can also be a great opportunity for you to reassess your budget and see how this may impact your potential purchase. 

If a move has been on your mind or you’ve been planning a purchase this year or next, these are all good signs for both parties as I foresee us moving from a buyer’s market into a more stable competitive housing market for all parties involved. Looking forward to the coming months and how RATLIFF can help you with your next sale, purchase, or investment.