The Great Housing Thaw: How Stabilizing Rates and ‘Megabuilder’ Incentives are Reshaping the 2025 Market

The U.S. housing market is recovering from a two-year slump due to stabilizing mortgage rates around 6%, Federal Reserve rate cuts, and major homebuilders acting as lenders. Buyer demand is rising, especially for new homes, as inventory remains tight. Large builders dominate by subsidizing rates, while smaller builders struggle. Policy reforms and modular housing financing support affordability. The market faces a "new normal" with slower growth and ongoing inventory challenges.