As of early October, 30-year mortgage rates, at about 6.3%, were essentially unchanged from early September (but well down from 7% in early 2025): The Fed’s first 2025 reduction of its benchmark rate, of .25%, had little effect, though consensus opinion is that further cuts are probably coming before the end of the year. Inflation continued to tick up slightly, while stock markets hit new all-time highs. Consumer confidence remained low, with significant concerns regarding personal finances, employment and inflation – though affluent consumers deeply invested in stock markets were less concerned than low and middle income segments.
In Napa County, September saw year-over-year increases in the number of listings going into contract, in sales volume and in luxury home sales. But the Q3 median house sales price was well down from Q3 2024, and most market indicators of supply and demand – such as the number of active listings for sale, absorption rate, median days-on-market, price reductions, and the percentage of listings selling over list price – continue to reflect conditions that are softer/cooler than last year. October data will give us further insight into the autumn selling season, before activity typically begins to slow down in November for the mid-winter holidays
