Curious about the housing market in 2025? Experts are offering promising forecasts, particularly regarding mortgage rates and home prices, which could significantly impact your buying or selling decisions.
Mortgage Rates Expected to Decrease: One major factor affecting your plans is mortgage rates. After a dramatic rise in recent years, experts project rates will ease slightly throughout 2025 (see graph below):
While this decline won’t be consistent, the overall trend is positive. It’s important to keep an eye on economic data and inflation numbers that may affect rates. Lower mortgage rates lead to improved affordability, decreasing monthly payments, and providing more flexibility in home purchases. This shift is likely to bring more buyers and sellers back into the market. Charlie Dougherty, Director and Senior Economist at Wells Fargo, explains that lower financing costs will likely attract affordability-crunched buyers. As demand increases, so will inventory and competition among buyers. To get ahead of the competition, lean on a Town & Country Realty Broker to understand how shifts in rates are impacting your local market.
Home Price Projections Show Moderate Growth: While mortgage rates are expected to decline, home prices are forecasted to rise at a more moderate pace, averaging about 2.5% nationally in 2025 (see graph below):
This is far more manageable than the rapid price increases of previous years.
What’s behind this ongoing increase in prices? Again, it has to do with demand. As more buyers return to the market, demand will rise—but so will supply as sellers feel less rate-locked. More buyers in markets with below-normal inventory will create upward pressure on prices, but increased listings should help stabilize price growth. This means prices will rise, but at a healthier and more sustainable rate.
National trends may not reflect local markets accurately. Lance Lambert of ResiClub, notes that even if the national forecast is accurate, certain regional markets could see varying outcomes. Working with a Town & Country Realty Broker, your local expert, is essential for understanding what’s happening here. See Local Appreciation graphs below:
These show that home prices are continuing to grow in Corvallis and Albany, but at a more moderate pace.
Bottom Line: With mortgage rates expected to ease and home prices projected to rise moderately, 2025 looks promising for both buyers and sellers. If you have questions about how these trends might impact your plans, connect with a knowledgeable Town & Country Realty Broker today at 541-757-1781 in Corvallis or 541-924-5616 in Albany. You’ll be glad you did!
Source: Keeping Current Matters. Disclaimer: The information contained, and the opinions expressed, are not intended to be construed as investment advice. Town & Country Realty does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Town & Country Realty will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
