Sales Hit a 9-Month High as Policy Battles Reshape HUD and Construction

Welcome to a new week in real estate. As we head into the Thanksgiving corridor, the market is serving up a surprising mix of optimism and controversy. The latest numbers show a pulse—existing home sales have hit their fastest pace since February—but affordability remains the headline grabber.

Today, we’re unpacking a heavy slate of news: from the administration's polarizing proposal for 50-year mortgages to major shifts in HUD funding that could reshape local housing services. Plus, big moves in the PropTech sector and a construction industry bracing for a "digital transformation" in 2026. Let’s dive in.

Existing Home Sales Hit 9-Month High: Buyers are stepping off the sidelines, pushing October sales up 1.2% to a seasonally adjusted annual rate of 4.10 million units. AP News reports that declining mortgage rates earlier this fall finally pulled more inventory into the transaction column.

Trump Floats 50-Year Mortgage to Ease Affordability: The President has proposed extending mortgage terms to 50 years to lower monthly payments, sparking a fierce debate among economists about the long-term cost to borrowers. The Washington Examiner analyzes critics' concerns that this could paradoxically drive up home prices by artificially inflating demand.

KB Home Shares Surge on Expansion News: Shares of the homebuilder jumped 7.2% after announcing new community openings in California, Arizona, and Florida, signaling strong builder confidence. StockStory details how the market reacted positively to the company's aggressive footprint expansion in key growth markets.

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2026 Outlook: Rising Costs & Digital Shifts: As the industry looks ahead to 2026, firms are bracing for continued material cost volatility and a persistent talent shortage. Deloitte Insights forecasts that digital transformation and AI will be critical for maintaining competitive edges in the coming year.

McKinstry Expands Footprint in Texas: Construction and energy services giant McKinstry has opened new offices and a fabrication shop in Austin and Dallas to meet the booming demand for data centers. Construction Dive covers the firm's strategic growth to support energy-intensive infrastructure in the South.

Labor Risks Highlighted in UK Supply Chains: A new report has identified the construction sector as a high-risk area for modern slavery, a warning signal for global supply chain managers. The Guardian reports on the call for greater transparency and worker protections in major infrastructure projects.

Homeless Funding Tied to Behavioral Health Mandates: The administration's new "Continuum of Care" rules will require homeless service providers to mandate behavioral health treatment for housing eligibility. News from the States explains how this policy shift forces Oregon providers to choose between federal and state funding streams.

Congress Races to Pass FY26 HUD Spending Bill: With a continuing resolution in place, lawmakers are debating a spending bill that could see HUD funding either cut by $2.2 billion or raised by $3.3 billion. NLIHC urges advocacy to protect vouchers for over 170,000 households at risk of losing assistance.

FHFA House Price Index Shows Continued Growth: U.S. house prices rose 0.4% in August, continuing a steady upward trajectory despite affordability headwinds. The FHFA releases its latest seasonally adjusted data showing a 2.3% year-over-year increase.

Millennials Face "Frozen" Market Conditions: New data reveals the median age of first-time homebuyers has reached historic highs as economic upheaval delays ownership timelines. The Washington Post investigates why millennials are remaining renters longer despite their prime earning years.

New Communities Launch in Roseville & St. Cloud: KB Home's recent grand openings in California and Florida highlight a specific demand for mid-range housing in suburban growth corridors. StockStory notes the pricing strategy starting in the low $600s for California and $300s for Florida.

Oregon Advocates Fear Funding Exclusion: Local housing advocates are raising alarms that new federal mandates could effectively disqualify them from crucial grants due to conflicting state laws. News from the States details the potential fallout for local "Housing First" initiatives.

Proptech Startup Tulu Raises $17M: New York-based Tulu has secured significant Series A funding to expand its "usage economy" platform for residential buildings. PropTechBuzz reports on the investment round led by GreenSoil PropTech Ventures.

Tech News: Zillow & Realtor.com Add AI Tools: The major portals are doubling down on artificial intelligence, with new features for messaging and satellite views rolling out to users. Real Estate News summarizes the latest tech updates including a new deal for SkySlope.

AI Platform Targets General Contractors: A new AI tool by Mercator.ai is gaining traction for helping general contractors identify and land new construction projects earlier in the pipeline. Bisnow highlights the growing role of business intelligence software in construction bidding.

The housing market is proving resilient as we close out 2025. While the "lock-in" effect hasn't fully evaporated, the stability in rates and the construction sector's strategic pivot to affordability are green shoots we can't ignore. We are likely seeing the new normal—a market that isn't booming, but is certainly building.

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