Today's Market News:
Rising Costs Deter Some, But Not All Buyers
Even though the beginning of fall usually sees slowing home sales, September began with a mixture of positive and negative trends. Here's a market update for the four weeks ending September 6th.
Homebuying costs continued to rise, with the typical buyer's mortgage payments hitting a 14-month high of $2,641. This is a result of rising median home sale prices and weekly average mortgage rates increasing. These numbers are keeping some would-be buyers out of the market.
However, new listings are up 2.1% from a year ago. Some sellers are listing their homes because they're concerned about the possibility of falling prices, while others need to sell because of life circumstances.
In addition, not all areas are seeing slow sales. For example, popular metros like San Francisco and the New York City suburbs are still competitive, and agents across the nation are actually seeing bidding wars for well-priced homes in desirable neighborhoods.1
Mortgage Rates Rise to Over 7%. Ouch.
The average rate on the popular 30-year fixed mortgage crossed over 7% on Thursday, September 10th for the first time since May 2025. That is an increase of 10 basis points from Wednesday. (A basis point equals 0.01%.)
Mortgage rates have been rising since late February, when the Iran conflict began. Rates hit a low of 5.99% the day before the war started.
To illustrate this effect, for a buyer purchasing a $430,000 home (near the median price) after qualifying for a 30-year fixed loan with a 20% down payment, their monthly payment of principal and interest would be $244 higher today than it was at the end of February.2
The Latest on Down Payment Assistance
While many would-be buyers still believe that a 20% down payment is mandatory, even more of them are unaware of their state's down payment assistance programs.
While every state has its own program, these five states have some of the best opportunities for financial assistance, including grants that don't require repayment.
California is home to the most generous first-time buyer program. The Dream For All Shared Appreciation Loan may fund up to 20% of a home's purchase price, capped at $150,000.
Massachusetts offers assistance of up to $30,000 statewide, with higher amounts up to $50,000 for Boston and other gateway city buyers. This deferred second mortgage is managed by MassHousing and carries 0% interest.
Maryland offers assistance to those with student debt through their SmartBuy companion program which pays off up to 15% of the home's purchase price up to $25,000.
Colorado offers a down payment grant that provides up to the lesser of $25,000 or 3% of the first mortgage. Applicants may also qualify for a separate deferred second mortgage up to $25,000 or 4% of the loan, whichever is less.
Minnesota is home to the Start Up program, which offers a below-market first mortgage bundled with a choice of several down payment loans. The state also manages the $150 million First-Generation Homebuyers Community Down Payment Assistance Fund.
For fast access to your state's down payment assistance options, visit the Down Payment Resource web site.3
Why Personal Content Belongs in Your Social Media
While your social media should contain details of your listings and open houses, don't stop there — think about potential site visitors who aren't shopping for a home this week. How do you encourage them to return when they're ready to buy or sell?
It's easy — just be yourself. Even though real estate is an expensive transaction, clients would rather work with someone they like, not the one with the most sales awards.
While other agents stick to listings, you can post personal content. It doesn't have to be related to a listing, unless it's something worth sharing. For example, you can post about the time you entered a listing through the dog door, as the entry lock wasn't working.
Want to take a photo of yourself and a new buyer? There are plenty of ways to make it appealing, such as adding the buyer's pets, or your own. You can add a caption like "Muttley loves buyers as much as I do." Fellow dog lovers will stop and like.
You can even share your experiences when you're having a chaotic day. A single photo of your vehicle's interior, stuffed with Open House signs, empty soda cans and children's shoes, provides background for you to talk about the challenges of being a working parent. No matter what spin you put on this, plenty of visitors can relate.4
Tell the Right Story With AI-Enhanced Listing Photos
For example, an agent may use AI to "repair" a damaged wood floor in a listing so that it looks brand-new. But anyone who views the property, expecting to see move-in ready wood floors, will doubt the agent's integrity. Loss of trust during a major financial transaction could result in a lost sale, a negative review and more.
While few states have passed laws that require AI-altered images to be disclosed, more are considering this route. California already requires that AI-altered listings be clearly disclosed and linked to the original, unaltered photo.
If an AI tool or app is used to change a home's interior or exterior condition, add non-existent features, or expand square footage, this may result in disciplinary action for agents, agencies, brokers and sellers who do so.5
Sources: 1redfin.com, 2cnbc.com, 3qz.com, 4lightersideofrealestate.com, 5lawcommentary.com.
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