November 11, 2025 – Happy Veterans Day

Economic Commentary

With all the chaos surrounding the government in the past several weeks, we would be remiss in not remembering a holiday that honors a key part of our government’s service to Americans. That is the veterans of our armed forces. Our veterans have protected our country from its inception in war time and in peace time. Our veterans have also helped protect our allies around the globe and have been at the forefront when tragedies have struck world-wide.  Sometimes we take a holiday and gloss over its meaning as we go about our busy lives. Thus, let’s take a minute to remember how thankful we should be for those who have served our country.     

Going back to the government chaos, there is one prevailing question on the mind of analysts and those who are in any type of commerce today, including real estate. And that is—how is our economy doing? We have missed reports on employment, personal income, retail sales and more. We do know the economy and especially job growth was slowing before the government shutdown. We also can logically assume that the government shutdown most likely contributed to the economy slowing even more. Despite this scenario, the markets were surprised that Fed Chair Powell stated that a December rate cut is not a foregone conclusion.

But just how slow is the economy and how do we assess the state of the economy without the reports we are so accustomed to?  Even as the shutdown ends, the reports won’t magically appear overnight as there will be a lot of catching up to do.  We are sure that this information would be helpful for the Fed when they meet for the last time in 2025 one month from today. The most important number summarizing the state of the economy was due at the end of last month. That is the Gross Domestic Product or GDP. That number would certainly give us a picture of where the economy is headed. Hopefully the picture will start being painted shortly.  

Weekly Interest Rate Overview

The Markets. Mortgage rates rose slightly in the past week, reversing the trend of the previous month. According to the Freddie Mac weekly survey, 30-year fixed rates rose to 6.22% last week from 6.17% the previous week. In addition, 15-year loans increased to 5.50%. A year ago, 30-year fixed rates averaged 6.79%, 0.57% higher than today. Attributed to Freddie Mac: “This week the 30-year fixed-rate mortgage averaged 6.22%. On a median-priced home, this could allow a homebuyer to save thousands annually compared to earlier this year, showing that affordability is slowly improving.”    Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.

Real Estate News

A growing number of Americans could soon be living in shopping malls, as builders look to reinvent dying retail spaces to fix the nation’s housing shortage. The math is simple: there are not enough homes for sale in the U.S. market compared to the number of Americans who need one—assuming they could afford it—while there are hundreds of “ghost” and “zombie” malls scattered across the nation, which have shut down or are facing closure due to falling sales and dwindling visits.  As of 2024, there were an estimate of nearly 34 million square feet of empty retail space across the country. Meanwhile, the U.S. had an estimated housing supply deficit of 3.8 million homes, according to Realtor.com.  “The U.S. is in need of residential units. Vacant properties such as residential shopping centers and malls can provide a large structure to bring in much needed units,” Jessica Lautz told Newsweek. Lautz is the deputy chief economist and vice president of research at the National Association of Realtors.  The idea to turn vacant or struggling shopping malls into housing is not new, but it has picked up speed since the pandemic, when the U.S. experienced a surge in online shopping which led to store closures across the country.  An average of 1,170 shopping malls closed across the country every year between 2017 and 2022, according to a report released by Capital One earlier this year. While many Americans still enjoy in-person shopping and foot traffic to malls has improved since the pandemic, many are still having a hard time keeping their doors open. Builders are increasingly looking at these spaces to be transformed into mixed-use buildings, merging commercial and residential. As of January 2024, at least 192 shopping malls across the country were planning on converting space into apartments, according to real estate consulting firm Realogic. Source: Newsweek

According to ATTOM, homeownership tenure continues to rise as owners stay put longer before selling. Homeowners who sold in the third quarter of 2025 had owned their homes for an average of 8.39 years, the longest tenure in at least 25 years and up from 8.13 years in the previous quarter.  All‑cash sales continue to tick up: 38.9 percent of home sales nationwide were all‑cash in Q3 2025, up from 37.6 percent a year ago.  Longer homeownership tenure may reflect a mix of factors shaping the 2025 housing market. Higher mortgage rates may have made homeowners less likely to move, as many remain locked into historically low rates from prior years. Limited inventory and elevated home prices may have also made finding an affordable next home difficult, keeping potential sellers in place longer. Meanwhile, the increase in all‑cash sales suggests a larger share of buyers may be avoiding financing altogether, potentially investors or downsizing homeowners using accumulated equity, which continues to influence both mobility and overall market dynamics.  Source: ATTOM

As AI tools are increasingly shining their influence on everyday life. A new report from Realtor.com has found that a majority of home shoppers are embracing new tech tools to navigate the housing market, with 82% of respondents stating they use AI for real estate insight. Despite the shift toward enhancing the homebuyer journey with tech advances, consumers still feel real estate professionals remain the most trusted and accurate source of information throughout the homebuying process. The study found that among AI platforms, ChatGPT (67%) and Gemini (54%) lead the way, as more than half of respondents stated they were excited about how AI can personalize their search. Following that trend, Zillow recently launched its own search functionality within ChatGPT, delivering listings and agents directly to users.  Social media has also become a common destination for homebuyers to turn to, as nearly 90% of those polled are utilizing it in their home search. YouTube (73%) and Facebook (57%) led the way in terms of choice for social media searches. A majority 76% of Gen Z stated that TikTok is one of their go-to outlets for housing content, more than any other generation.  “The housing market remains a challenge for both buyers and sellers, and Americans are responding by embracing new ways to get smarter about their decisions,” said Realtor.com Chief Economist Danielle Hale. “From AI platforms to social media, consumers are expanding where they turn for insights. This shift shows that the future of real estate will be shaped not only by market conditions, but also by how quickly people adopt fresh tools and perspectives to navigate them.”  Source: Realtor.com