October 30, 2025 | Real Estate Market Update for Northville, Novi, South Lyon, Plymouth and Metro Detroit | Insights by Jeff Duneske, Northville Realtor®

October 30, 2025 | Real Estate Market Update for Northville, Novi, South Lyon, Plymouth and Metro Detroit | Insights by Jeff Duneske, Northville Realtor®

Fed Cuts Rates Again - What It Means for Metro Detroit Homebuyers and Sellers

The Federal Reserve voted 10–2 to cut its benchmark interest rate to a target range of 3.75%–4%, marking the second consecutive rate cut of 2025. This move, paired with the upcoming end of quantitative tightening on December 1, signals a significant shift in national monetary policy, one that could ripple into the Metro Detroit real estate market.

Key Takeaways from the October FOMC Meeting

According to CNBC and the Federal Reserve, the decision reflects moderating inflation (now around 3%) and slower job growth, while maintaining caution about future cuts. Chair Jerome Powell stated that a December rate cut is “not a foregone conclusion,” emphasizing that the Fed remains data-driven amid ongoing uncertainty from the government shutdown.

The Fed’s $6.6 trillion balance sheet will soon stop shrinking after $2.3 trillion in reductions since 2022, and reinvestments will shift toward short-term Treasury bills, a move that analysts say could support long-term financial stability heading into 2026.

Impact on Housing and Mortgage Rates

While the FOMC’s press release notably made no direct mention of housing, Powell did acknowledge during his press conference that “housing services inflation has been coming down and is expected to continue.”

This trend, combined with easing rate pressure, suggests that mortgage rates could moderate further through the end of the year, a potential boost for both first-time buyers and homeowners considering a move in Northville, Novi, South Lyon, or Plymouth.

With the 10-year Treasury yield stabilizing and mortgage rates recently reaching a one-year low, this environment could offer a strategic opportunity to buy or refinance before competition intensifies in early 2026.

Pending Home Sales Hold Steady

The latest data from the National Association of REALTORS® (NAR) shows that pending home sales were unchanged in September, holding steady month over month but down slightly (0.9%) from last year.
Despite record-high housing wealth and a strong stock market, Lawrence Yun, NAR’s Chief Economist, notes that the market has not yet reached full balance, particularly as job growth softens.

In the Midwest region, pending sales dipped 3.4% month over month and 1.5% year over year, reflecting the continued tight inventory and affordability challenges that many Metro Detroit homebuyers face.

What This Means for Metro Detroit Real Estate

For local homeowners and buyers, these developments point to a window of opportunity before 2026. If the Fed pauses further rate cuts in December, mortgage rates could stabilize at current levels — still well below last year’s highs. Sellers may see renewed activity from rate-sensitive buyers eager to take advantage of improved affordability, especially in high-demand areas such as Northville, Novi, South Lyon, and Plymouth.

In short: the market is rebalancing, not retreating. A careful, well-informed strategy can make all the difference in the months ahead.

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Jeff Duneske, Northville Realtor® – Keller Williams Advantage
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