Fifteen Percent of Americans Plan to Buy a Home This Year

The 2025 homebuying season is shaping up to be competitive, but full of opportunity—if you know how to navigate it. With mortgage rates leveling out, home prices rising at a slower pace, and inventory still tight in many areas, buyers, lenders, and real estate agents will need to stay sharp to make the most of this market.

Here’s what you need to know—and how to get ahead.

Mortgage Rates: Stability Brings Opportunity

3% rates are a white whale that we may never spot again, but the market volatility of the past two years shows signs of easing. Most experts predict rates will hover in the mid-to-high 6% range through 2025. This isn’t low by historical standards, but the stability can give buyers more confidence to move forward.

What this means for buyers:

If you’ve been holding out for a lower rate, it’s time to rethink your strategy. You can refinance later, but you can’t go back in time and buy at today’s prices. Consider rate buydowns or assumable mortgages to lower your monthly payment.

What this means for lenders & agents:

Educate your clients. Many still expect rates to drop significantly—help them understand their options and why waiting could cost them more in the long run.

Inventory: It's a Seller’s World

January 2025 marked the 15th straight month of inventory growth, with an estimated 24.6% more homes on the market. More sellers are expected to list their homes this year, but demand is still outpacing supply in many areas. We might be stating the obvious, but well-priced homes in desirable locations will move fast this spring.

What this means for buyers:

Be ready to take an ‘all gas, no brakes’ approach when submitting offers. Work with a lender early to get pre-approved, so you’re not scrambling when the right home hits the market.

What this means for lenders & agents:

Cash is still king, but strong financing is heir to the throne. Helping buyers position themselves competitively will be crucial. Pre-approval letters, fast closings, and creative financing solutions can make all the difference.

Home Prices: Rising Slow Like Sourdough

Home values are expected to increase modestly in 2025, a welcome shift from the rapid appreciation of previous years. While prices aren’t dropping, buyers may have more room to negotiate.

What this means for buyers:

Waiting won’t make homes cheaper, but it may give you more negotiating power. Be strategic with your offer, and work with a savvy agent to find hidden opportunities.

What this means for lenders & agents:

Sellers still have the upper hand—but pricing a home too high could backfire. Help clients price competitively and highlight financing options to attract more buyers.

How to Make the Most of the 2025 Market

For Buyers:

• Get pre-approved now – Know your budget and be ready to move fast.
• Explore financing options – Rate buydowns, assumable loans, and second mortgages can help bridge the affordability gap.
• Work with an expert – The right agent and lender can make or break your deal.

For Lenders & Real Estate Agents:

• Educate your clients – Many buyers still believe rates will plummet. Set realistic expectations.
• Offer creative solutions – Bridge loans, second mortgages, and down payment assistance can help buyers close the deal.
• Strengthen your network – In a competitive market, strong lender-agent partnerships lead to more successful transactions.

Final Takeaway

The 2025 spring and summer housing market looks competitive, but opportunities exist for those who are prepared. Whether you’re buying, selling, or financing, strategy and speed will be key.

Thinking about buying or refinancing? Let’s talk about your options.

DISCLAIMER: The content in this advertisement is for informational purposes only. This is not an offer for extension of credit or a commitment to lend. All loans are subject to underwriting guidelines and are subject to change without notice. Refinancing an existing loan may increase the finance costs over the life of the loan.