Regional markets with limited housing inventory typically respond fastest to mortgage rate drops. For example, supply-constrained cities see quick upticks in showings and offers once rates fall under six point two five percent. Conversely, markets with ample inventory may see slower demand shifts. Buyers in hot markets re-engage quickly with more confidence, while sellers adjust their listing strategies to capitalize on the renewed activity. Understanding your local market's inventory levels helps anticipate speed and scale of response to rate changes.