Is the Housing Market Heating Up This December?

by | Dec 9, 2025

If you think December is a time when the housing market goes into hibernation, think again. The latest news shows that buyers are active, rates are moving, and the industry is finding its footing. Here is what is happening right now and why it matters to you.

Buyers Are Not Waiting for Spring

Usually, the housing market slows down during the holidays. However, data from early December 2025 shows that buyer demand is near a three-year high. This means more people are out looking for homes and signing contracts than we have seen in quite a while.

  • Why it matters: If you are selling your home, you do not necessarily need to wait until spring to list it. There are eager buyers looking right now.
  • The numbers: Pending home sales are up significantly compared to last year.

Mortgage Rates Are Moving Up

Even though buyers are active, it is getting slightly more expensive to borrow money. Mortgage rates recently hit a three-month high, reaching about 6.36 percent for a 30-year fixed loan.

  • The cause: There isn’t one big reason for the jump. Instead, it is due to general nervousness in the financial markets before the Federal Reserve meets later this month.
  • What to expect: Rates might be “volatile” for a few weeks. This means they could go up and down quickly without much warning.

Agent Commissions Are Leveling Out

Earlier this year, there were big changes to how real estate agents get paid. After a period of uncertainty, things seem to be settling down. The average commission for a buyer’s agent has rebounded to about 2.42 percent.

  • The trend: This is higher than the low point right after the rules changed, but still lower than it was a few years ago.
  • The takeaway: Agents and clients are figuring out how to work together under the new system, and compensation is becoming more predictable again.

The Bottom Line:

The real estate market is full of surprises this winter. Demand is high, rates are testing new ceilings, and the industry is adapting to new rules. Whether you are buying or selling, staying informed is the best way to make smart decisions.