As a homebuyer, staying informed about the current market is key to making a confident decision. A recent mid-year forecast from Realtor.com reveals a complex but slowly improving landscape for buyers. The market is gradually rebalancing, offering some cautious optimism with easing mortgage rates and more available homes.
Here’s a breakdown of the key takeaways from the report to help you navigate your homebuying journey.
Key Market Predictions for the Remainder of 2025
- Mortgage Rates May Offer Relief: While the annual average mortgage rate is expected to match 2024’s 6.7%, projections show rates could dip to 6.4% by the end of the year. This modest drop could save a homeowner nearly $70 per month on a $350,000 loan.
- Home Price Growth is Slowing: The median home price is forecast to increase by 2.5%. This represents a significant slowdown from the 4.5% growth seen in 2024.
- More Homes are on the Market: Housing inventory has seen a notable increase, climbing 16.9% compared to last year. This is a positive sign for buyers, pushing the market into more balanced territory.
- Sales Volume Remains Low: The forecast for existing-home sales has been revised down to 4 million for 2025. If this holds true, it would be the lowest number of existing-home sales since 1995.
Is It Still Better to Rent?
For many, renting continues to be a more affordable option in the short term. Rents have declined 2.7% from their peak in 2022. According to the report, Pittsburgh was the only major U.S. metro area where buying a starter home was more affordable than renting as of June 2025.
The Takeaway for Homebuyers
The 2025 housing market presents a shifting landscape. While challenges with affordability persist, the trend is moving in a more favorable direction for buyers. Increased inventory, slowing price growth, and the potential for lower mortgage rates by year-end are all positive signs.
Navigating these changes requires expert guidance. If you’re considering buying a home, it’s the perfect time to explore your options and get pre-approved.
Ready to take the next step? Contact me today to discuss your financial goals and create a personalized plan for your home purchase.
Click here to get Pre-Approved now
Sal Trapani Mortgage Banker | Owner MJ Mortgage LLC Cell: 281-608-2846 Email: sal@mjmortgagellc.com Web: www.mjmortgagellc.com 33130 Magnolia Cir, Magnolia, TX 77354 NMLS 1055510, NMLS 2381195
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