Curious about what the housing market might look like this year? Whether you’re thinking about buying or selling, staying informed is key—and that’s where the experts come in. Here’s the latest on two major factors shaping the market: mortgage rates and home prices.
Mortgage Rates: What’s Ahead?
The big question everyone’s asking is, “Will rates drop this year?” The short answer: they’re expected to ease, but not dramatically.
Don’t hold your breath for a return to 3-4% rates. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), predicts rates will settle closer to 6% by year-end, and most experts agree.
While small fluctuations are likely, the overall trend points to gradual relief. Instead of trying to time the market, focus on what you can control—like getting pre-approved and understanding how even minor drops in rates could lower your monthly payment. A great lender and agent can keep you up-to-date and help you navigate the numbers. We’re happy to connect you with trusted mortgage professionals to help make the process seamless.
Will Home Prices Drop?
Probably not. While rates may ease, prices are expected to keep climbing—just more slowly. Experts forecast an average increase of around 3-4% nationwide, which is a much steadier pace than we’ve seen in recent years.
If you’re waiting for prices to plummet, you may be waiting a while. Low inventory is still a factor, and demand continues to outpace supply. Redfin puts it simply:
“Prices will rise at a similar pace to late 2024 due to a lack of new inventory meeting demand.”
However, housing trends can vary widely by location. Some areas may see prices level off or dip slightly, while others could experience higher-than-average increases, which is expected here in the Bay Area. Working with a local agent is the best way to understand your market and how it impacts your plans.
The Bottom Line
The housing market in 2025 will bring its share of changes, but staying informed is essential. With mortgage rates expected to ease slightly and home prices rising at a steadier pace, having a solid plan and trusted experts is key to success.
If you’re ready to strategize your next move, the Vano Maurry Team is here to help. Reach out to us for personalized insights and guidance tailored to your goals!
Content and Graphics courtesy of Keeping Current Matters
