A small dip in mortgage rates last month gave the fall market a surprise boost, offering agents an important preview of how quickly buyers and sellers will move when affordability improves.

In October, the average 30-year rate eased to 6.25%, and housing activity immediately picked up. New listings and newly pending sales both rose 5% from a year ago, marking the busiest October since 2021. Below are the key insights and takeaways from Zillow's October Market Report for agents navigating the months ahead.

1. Buyers are watching rates closely

Even a small drop in rates reignited demand. In a time of year when activity is usually falling off, pending sales held steady as affordability improved, showing that motivated buyers are waiting for the right window.

Tip: When rates tick lower, move fast with pre-approved clients. Be ready to re-engage prospects who hit pause earlier this year — they may jump back in sooner than expected.

2. Sellers are getting more realistic

Nearly 27% of active listings cut their price in October, just below record highs. Only one in four homes sold above list in September, the fewest in any September since 2019.

Tip: Set expectations early. Pricing to the market — not above it — helps listings move faster.

3. Regional shifts are opening new opportunities

While national prices held flat, stark regional differences have emerged. Affordable metros like Cleveland, Hartford and Milwaukee saw strong annual gains, while pricier Sun Belt markets such as Austin and Tampa cooled.

Tip: Zoom in on your local numbers. Highlight where prices are holding steady or softening, and use that data to guide both buyers and sellers toward realistic expectations.

4. Inventory remains tight, but momentum is back

After a slow summer, new listings rose 5% compared to last October — an uncommon lift for late fall and the strongest October since 2021. The increase was most notable in affordable metros like Raleigh, Orlando and Indianapolis.

Tip: Keep an eye on new listings in your market. A rise in seller activity, even modest, can signal shifting confidence and potential changes in local pricing trends.

5. Be ready for seasonal slowdown — and spring prep

October proved that small shifts in rates can quickly change market sentiment.

Tip: Use the quieter winter months to build pipelines. Help clients watch rate trends, update pre-approvals and prepare listings so they're ready to hit the market early in 2026.

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