The midterms sent Washington a clear message: housing affordability is a crisis. The numbers back it up: 7% mortgage rates and a 30-year low in purchase applications signal a market frozen by high costs and political uncertainty.
The Gap Between Rates and Demand
Yet purchase applications fell to 131, the sixth-lowest weekly reading since 1995, indicating buyers are staying away.
Key Metrics: Stagnant Sales and Delisting Trends
The delisting rate in October was 4.4%, down from 4.6% a year ago, suggesting sellers are not panicking, reports Realtor.com. However, existing-home sales remain below healthy levels due to thin inventory, as owners with 3% or 4% mortgages refuse to sell, keeping prices high.
Political Context: Midterm Promises and Affordability
Democrats, swept into power with housing affordability as a key campaign issue, face a market where 95% of U.S. adults believe the country is in an affordability crisis, according to a Harris Poll. In Denver, sales volume dropped by a quarter from year-ago levels to $1.97 billion in October, reflecting broader market fears.
Demographic Shift: Older Buyers Dominate
The typical home seller in 2026 was 63 years old, up from a median of 47 in 2005, while repeat buyers had a median age of 62, reports the National Association of REALTORS®. These older, equity-rich buyers are driving the market, with 30% paying all cash and a median down payment of 19% for those using mortgages.
The bottom line: High rates, thin inventory, and demographic shifts are freezing the housing market, leaving first-time buyers behind. Investors will note that political promises alone won’t thaw this stagnation—the figure that matters is the $316 monthly increase in mortgage payments since February, pricing out buyers nationwide.
Sources
- How well is the housing market working for us? Three professors discuss their views. | Marquette Today
- Housing Market Feels the Chill as Buyers Pull Back—but Sellers Are Not Panicking Yet
- America’s Housing Market Just Hit a 30-Year Low — and 7% Mortgage Rates Are Making It Worse
- Fear keeps its grip on Denver’s housing market as buyers and sellers pull back
- Housing affordability after the midterm elections
- Older Buyers Drive 2026 Housing Market
Photo: Christian McMenamy / Unsplash (Unsplash License)
