Mortgage Market Update Oct 24th 2025: CPI Report, What It Means For Realtors, Home Buyers & Sellers
The long-awaited Consumer Price Index (CPI) report is finally in — and after weeks of limited government data due to the shutdown, today’s numbers are giving the market something to chew on.
Headline Takeaway: Inflation Is Easing — Slowly, but Steadily
The September CPI came in at +0.3%, just a notch above the forecasted 0.2%, and up 3.0% year-over-year. Energy prices (especially gasoline) were the biggest movers, while food rose only modestly. Core inflation — which strips out food and energy — increased 0.2%, signaling that the underlying trend is still cooling.
That’s encouraging news for rates. Inflation is the core driver of long-term mortgage pricing, and although we didn’t get the perfect print the market wanted, it’s still a sign of stability — not panic.
The Bigger Picture: A Market Hungry for Data
Because government reports on jobs and inflation were paused, traders and bond markets have been flying blind for weeks. That’s why this CPI print carried extra weight — and explains the early-morning volatility we’re seeing.
Here’s the good news: the bond market had already priced in much of what we saw today. The Fed’s next 25-basis-point cut is essentially “baked in,” and futures markets are still predicting another reduction before year-end. Translation: mortgage rates are trending in the right direction, even if the path is bumpy.
Why Realtors and Homeowners Should Be Optimistic
When inflation cools and rates stabilize, it creates a perfect window for both sides of the transaction:
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Buyers can finally lock rates that feel manageable — and have more homes to choose from.
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Sellers can benefit from renewed buyer confidence and stronger foot traffic.
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Realtors who’ve stayed consistent with their prospecting and follow-up are seeing their pipeline pay off.
As one industry speaker joked this week, “DSP only works every single time you use it.” The agents who kept calling, emailing, and following up while rates were high are the ones now sitting on new contracts.
Inventory Is Back — and That’s a Good Thing
After years of scarcity, we’re finally seeing a healthy uptick in both new and existing homes for sale — the highest level in roughly five years. The Mortgage Bankers Association even noted at last week’s national convention that some price deflation may occur in the South and Southeast.
Before you worry, remember: a slight cooling in prices isn’t bad — it’s healthy. It helps reset affordability, encourages more listings, and increases total market volume. A small dip in prices can actually mean more closed transactions overall — and that’s great news for lenders, Realtors, and homebuyers alike.
What’s Going On with Fannie Mae and Freddie Mac?
There’s been chatter about a potential Fannie/Freddie IPO, which could be one of the largest in U.S. history — even topping Saudi Aramco’s record-setting debut. While that sounds dramatic, the most likely scenario is a large stock sale while both agencies remain in conservatorship for the foreseeable future.
That outcome favors stability, and stability is exactly what the mortgage market needs right now. Investors want confidence that the bonds they buy — the same bonds that fund your borrowers’ 30-year fixed loans — are solid and predictable.
Bottom Line: Momentum Is Building
Rates are gradually improving. Inflation is coming under control. Inventory is rising. And buyer sentiment is slowly returning.
If you’re a Realtor, stay consistent — this is when your persistence pays off.
If you’re a homeowner, it’s time to review your equity and consider whether a refinance or move-up opportunity makes sense.
If you’re a buyer, remember: the best time to buy isn’t when the headlines are perfect — it’s when others are still hesitating.
The air is clearing. Keep your focus on activity, connection, and long-term relationships — because the next few months could offer the best balance of opportunity we’ve seen in over a year.
About Between Two Doors
Between Two Doors is a podcast where I talk with Realtors about their journey, aiming to connect home buyers and sellers with agents on a more personal level. I ask “right brain” questions that go beyond transactions, focusing on the experiences, values, and passions that make these professionals great at what they do.
Listen to more episodes at: https://www.betweentwodoors.com
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Premier Lending, Inc.
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