Mortgage rates continued trending downward and ended the year at a relative low. While rates remain higher than the historic lows of 2020–2021, buyer activity across Boston and the surrounding suburbs remains steady for homes that are priced appropriately.

Despite broader headlines suggesting a stalled market, what we are seeing locally is more nuanced. The market is stable, buyers are active, but they are disciplined, payment-conscious, and highly sensitive to value.

The data shaping today’s market

A few national data points help explain current behavior:

• At the peak, 85.6% of U.S. mortgages were under 5%

• Today, that number is closer to 72%

• Roughly 18% of borrowers now carry mortgage rates of 6% or higher

• First-time homebuyers are at a 40-year low, representing about 25% of all buyers (historically 35–40%)

These shifts have changed how both buyers and sellers approach decisions.

What’s really happening with supply in the city

Inventory constraints in Boston are not simply the result of homeowners refusing to sell. In the city, we are seeing an increase in expired listings, which signals that pricing strategy, not demand, is the deciding factor.

In many cases:

• Homes are being listed above what today’s buyers will support

• Early feedback is missed or ignored

• Listings expire or are taken off the market rather than being repositioned

This creates the appearance of low inventory, even though buyer demand is still present. The issue is not a lack of listings. It is that many listings are not clearing the market.

Seller takeaway: this is a pricing and positioning market

This is not a market to “test the waters.”

Homes that are:

• clearly well-priced relative to their competition,

• properly prepared, and

• positioned to generate early momentum

…are selling.

Homes that overreach on price often:

• sit without offers,

• lose leverage, and

• eventually expire or require reductions later.

In the current environment, the most effective lever for sellers is not waiting for rates to fall further. It is pricing and positioning the home correctly from day one.

Buyer takeaway: leverage still exists, but it’s subtle

With fewer first-time buyers competing, leverage hasn’t disappeared, it has shifted.

Buyers are finding opportunity through:

• offer structure and timing

• targeting homes that missed initial expectations

• understanding seller motivation on a listing-by-listing basis

Good homes still move quickly, and frequently with multiple offers at many price points. Buyers who are prepared and decisive are the ones succeeding.

What we’re seeing locally: Boston and the suburbs

Across neighborhoods and towns like Lexington, Arlington, Beacon Hill, Charlestown, and South Boston, activity remains steady when pricing aligns with market reality.

Lexington in particular continues to benefit from long-term demand drivers including schools, community, and housing quality. The biggest differentiator we see is not interest or rates, but whether a home is positioned as the best value in its competitive set.

Less about timing, more about leverage

It’s easy to anchor today’s rates to pandemic-era lows. But the next wave of market movement is unlikely to come from a dramatic rate drop.

It will come from:

• life events

• selective price discovery

• realistic expectations

• smart deal structure

In today’s market, leverage comes from information, preparation, and execution, not waiting.

Talk to The Mazur Team

Whether you are considering selling or buying in 2026, clarity matters more than headlines.

For sellers: we help create pricing and positioning strategies that generate early momentum.

For buyers: we help identify where leverage actually exists and how to compete intelligently.

The Mazur Team

Andrew, Alyssa & Hildy Mazur

508-801-8872