A ‘For Sale’ sign is posted beside property for sale in Alhambra, Calif., on Aug. 28, 2025. Frederic J. Brown/AFP via Getty Images
The slight easing of interest rates in December, as the Federal Reserve initiated a 25 basis-point reduction, helped homeowners regain slightly more than $30,300 in purchasing power, real estate website Zillow said on Feb. 23.
Buying power is at its highest level since March 2022, Zillow said, and any additional interest rate cuts in 2026 could mean additional boosts to homebuyers’ purchasing options.
