RGV Housing Market Gains Momentum as Mortgage Rates Ease in 2025 Q3

Housing Market Gains Momentum as Mortgage Rates Ease, Says NAR Report

The housing market is showing signs of renewed strength, according to the National Association of REALTORS®’ latest Pending Home Sales Report, which reveals a notable uptick in buyer activity as mortgage rates continue to moderate.

Pending Home Sales on the Rise

Pending home sales — a key indicator of future home sales activity — rose 4.0% from July to August, marking the second consecutive month of gains. On a year-over-year basis, contract signings were also up 3.8%, signaling a welcome rebound in housing demand after a period of slower activity earlier this year.

Experts attribute the improvement to lower mortgage rates, which have helped restore confidence among buyers and sellers alike. As financing becomes more accessible, more prospective homeowners are re-entering the market.

Regional Breakdown

All but one region saw month-over-month increases, with particularly strong performance in the Midwest and West. Here’s how each region fared:

• Midwest: +8.7% month-over-month; +6.7% year-over-year
  The Midwest led the nation in growth, buoyed by more affordable home prices and an influx of buyers taking advantage of lower borrowing costs.

• South: +3.1% month-over-month; +4.2% year-over-year
  The South continues to show steady growth, with many metros experiencing strong job markets and population inflows supporting demand.

• West: +5.0% month-over-month; +0.2% year-over-year
  The West saw a solid monthly jump as inventory levels improved and more buyers were able to lock in favorable financing terms.

• Northeast: -1.1% month-over-month; +2.6% year-over-year
  The Northeast was the only region to post a monthly decline, though year-over-year numbers remained positive, suggesting underlying stability in the market.
  
  

A Positive Outlook for the Months Ahead

Overall, the report paints an optimistic picture for the housing market heading into the final quarter of the year. With mortgage rates easing and buyer activity strengthening, real estate professionals are hopeful this momentum will continue through the fall season. Locally, Edinburg homes seem to be selling about 20 days faster than those in McAllen. Edinburg homes also show that they're larger, newer and priced more affordably than those in McAllen. It's good to note that this report shows only one zip code in both cities and only detached homes and not new construction, condos or townhomes. 

For buyers who’ve been waiting for better conditions, now may be an opportune time to explore the market — before demand heats up further.



Here's the link to the report from NAR: https://www.nar.realtor/newsroom/nar-pending-home-sales-report-shows-4-0-increase-in-august