Curious about where the housing market is heading in 2025? There’s good news: experts are predicting positive trends in two key areas—mortgage rates and home prices—which could directly impact your plans.
Mortgage Rates Expected to Decline
One of the most significant developments in 2025 is the expected decrease in mortgage rates. After a steep climb in recent years, rates are projected to gradually ease throughout the year. While the path won't be perfectly smooth, the overall trend should improve affordability. Lower rates mean reduced monthly payments, giving buyers more flexibility. As rates fall, more buyers and sellers will likely re-enter the market. According to Charlie Dougherty of Wells Fargo, this shift will pull buyers off the sidelines and increase demand.
Modest Growth in Home Prices
Though mortgage rates may decline, home prices are projected to rise, albeit at a slower pace than in previous years. Experts predict an average increase of 2.5% nationally, a more manageable growth rate compared to the double-digit hikes of the past. The balance between growing demand and increasing supply will help moderate this price rise. However, local market conditions will vary, with some areas seeing faster or slower growth.
Final Thoughts
With falling mortgage rates and moderate price growth, 2025 could be a favorable year for both buyers and sellers. For personalized advice, consult with a local real estate expert to navigate your market and maximize opportunities.
