As we look ahead to 2025, it’s important to understand where the housing market might be heading. Whether you’re thinking of buying or selling a home, knowing what experts predict can help you make informed decisions. However, if you’re considering holding off on buying a home, you might want to rethink that strategy.
While there’s some good news on the horizon regarding mortgage rates, don’t expect a major drop. Experts from Fannie Mae, the Mortgage Bankers Association (MBA), and the National Association of Realtors (NAR) forecast a slight decline in mortgage rates throughout 2025. This is largely due to anticipated easing inflation and a slight rise in unemployment rates, which could lead the Federal Reserve to lower its benchmark interest rate.
But even with these potential reductions, mortgage rates are not expected to plummet. You could be disappointed if you’re waiting for a drastic rate drop. Today’s rates, while higher than the historic lows we saw a few years ago, are still very competitive by long-term standards.
While more homes are expected to hit the market in 2025, don’t expect the market to be flooded. With slightly lower mortgage rates, more buyers and sellers who have been on the fence may decide to jump into the market, increasing both supply and demand.
Forecasts suggest home sales could rise to about 5.4 million next year, up from an estimated 4.5 million in 2024. This uptick means more choices, but it also means more competition. If you’re thinking about waiting until 2025 to buy, remember that you might be facing more buyers in the market and potentially higher prices.
Even with a more balanced market expected next year, home prices are still projected to rise, albeit slower. On average, experts predict a 2.6% increase in home prices nationally in 2025. While this might sound modest, waiting could cost you more.
With prices steadily climbing, buying now could help you avoid paying more for the same home next year. Plus, purchasing a home sooner rather than later allows you to build equity now rather than miss out on potential gains over the next year.
While it’s helpful to stay informed about future real estate forecasts, waiting for perfect conditions could mean missing out on great opportunities now. If you’re considering buying a home, there’s no time like the present to explore your options. For personalized guidance on navigating today’s market, reach out to your local mortgage professional.
We can provide expert advice to help you make the best decision for your unique situation. Don’t wait for the market to change—take action now and secure your future today!
We've been helping customers afford the home of their dreams for over 20+ years and we love what we do.
Company NMLS: #2038063
MA - Mortgage Broker lic #MB2038063
RI - Loan Broker lic #20214228LB
ME - Loan Broker lic #2038063
FL - Mortgage Broker lic #MBR6561
www.nmlsconsumeraccess.org
420 Scrabbletown Road Suite #B
North Kingstown, RI 02852
Phone: (508) 212.6063
gp@firstclassmtg.com
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