After several years of rising home prices and volatile mortgage rates, it looks like the housing market will start to head in a more normal direction in 2025 – at least according to the latest forecasts. And if you’ve been thinking about making a move, that means the uncertainty that could’ve been throwing off your plans may be coming to a close.

 Here’s a look at the latest expert forecasts on two of the biggest factors expected to shape the market in the year ahead.

 Will Mortgage Rates Come Down?

 Everyone’s keeping an eye on mortgage rates, and they’re projected to settle in the mid-6% range by the end of the year (see chart below):

But remember, rate projections will continue to shift as new information becomes available. Expert forecasts are based on what they know right now. If there’s increasing uncertainty around inflation, employment, government policies, or other key economic drivers, mortgage rates will move. So, don’t get caught up in the exact numbers or try to time the market. Instead, focus on the fact that a bit more stability in rates isn’t a bad thing – and even a small change can help your bottom line. 

A trusted lender and your RE/MAX^® agent will make sure you always have the latest data and the context to understand what it really means for you and your monthly payment. 

Will Home Prices Fall? 

The short answer? Not likely. Home prices are projected to keep rising in most areas – just at a slower, more normal pace. If you average the expert forecasts together, you’ll see prices are expected to go up by about 2.7%, with the majority of the projections hitting somewhere in the 3 to 4% range by the end of the year. And that’s a much more typical and sustainable rise (see graph below):

So, don’t expect a sudden drop that’ll score you a big deal if you’re thinking of buying this year. While that may sound disappointing if you’re hoping prices will come down, refocus on this. It means you won’t have to deal with the steep increases the market felt in recent years, and you’ll also likely see any home you do buy go up in value after you get the keys in hand. And that’s a good thing.

Prices normalizing is a welcome sign after years of unsustainable home price growth. It means we’re moving into a healthier market. And that’s something we haven’t been able to say in a while.

And if you’re wondering how it’s even possible prices are still rising, here’s your answer. It all comes down to supply and demand. Even though there are more homes for sale now than there were just a year ago, there still aren’t enough houses on the market to keep up with all the buyers out there.

Keep in mind, though, the housing market is hyper-local. So, this will vary by area. Some markets will see even higher price appreciation. And some may see prices level off or even dip slightly. In most markets though, prices will continue to rise (as they usually do).

If you want to find out what’s happening where we live, you need to lean on your local RE/MAX^® agent who can explain the latest trends and what they mean for your plans.

Bottom Line

The housing market is shifting, and the experts say 2025 will move toward a more normal, healthier pace for the year. With rates stabilizing and home prices rising at a more typical and sustainable rate, it’s all about staying informed and making a plan that works for you.

What mortgage rate are you waiting for to make your move? Tell me your number, and I’ll show you how the math works out for your monthly mortgage payment. It may be more attainable this spring than you think.

Buying your first home is exciting, but let’s be real – it can also feel overwhelming. It’s a big step, and with that comes plenty of questions. Am I making the right decision? Can I really afford this right now? Will I be able to make ends meet if I have unexpected repairs? What if I lose my job?

Here’s the thing: every first-time homebuyer has these thoughts.

The homebuying process has always been a mix of excitement and nerves, and that’s completely normal. Here's some information that can give you a bit of perspective, so you don’t have these concerns.

Focus on What You Can Control

Since homeownership is new to you, you’re probably feeling like it’s hard to know what to budget for. And that can be a bit scary. You’ll have the mortgage, home insurance, and maintenance to think about – maybe even lawn care or homeowner’s association (HOA) fees. It’s easy to let the dollar signs be overwhelming. As Zillow says:

“Buying a house is a big decision, and you might feel confused and indecisive as you assess your current financial situation and try to work through whether or not the timing is right. Making big life choices might come with some self-doubt, but crunching the numbers and thinking about what you want your life to look like will help guide you down the right path.”

The important thing is to focus on what you can control. By partnering with a local agent and a trusted lender, you can get a clear understanding of what you can borrow for your home loan, what your monthly payment would be, and how your mortgage rate can impact it. And since that payment will likely be your biggest recurring expense, the key is to make sure the number works for you.

Don’t Stress About Repairs

The maintenance and repairs? Those can be a little bit harder to anticipate. But don’t forget you’ll get an inspection during the homebuying process to give you a better look at the condition of your future house. And with your inspection report in hand, you’ll have a good idea of what needs work. This way, you can start saving up so that you’re ready if and when something breaks.

But even then, if this is something that’s still really nagging at you, talk to your agent about asking the seller to throw in a home warranty. Those can cover repairs for some of the bigger systems in the house, like the HVAC, if they break within a specific time frame. While this isn’t a huge expense for the seller, the likelihood of a seller agreeing to one depends on what’s happening in your local market and how competitive it is right now.

It’s Okay To Stretch – Just Not Too Far

And remember, chances are that money will be a little tight – at least at first. And that’s kind of to be expected. A lot of times when someone buys their first home, they cut down on things like shopping and eating out for a while until they get a better idea of how their expenses will shake out in the new home.

But if you’re crunching the numbers and you won't have enough money left for things like gas, food, etc. – it's a sign you’d be stretching yourself too far. The last thing you want is to take on a payment that’s too much to handle. But stretching a little? That’s different. That’s normal.

Your Job Will Probably Change – And That’s Okay

And don’t forget, you’ll likely earn more down the road, so that slight stretch now won’t seem so bad as time wears on. As you advance in your career, you’ll probably start to make more money too. So, as your paycheck grows, the payments will get easier. Renting is a short-term option – and it’s one you deserve to get out of. Buying a home is a long-term play.

And just in case you’re worried about what happens if you do lose your job, you should know there are options, like forbearance, designed to help you temporarily pause payments on your home loan due to hardship.

Bottom Line

Buying your first home is a big decision, and it’s okay to feel a little nervous about it. But if you’re financially ready, don’t let fear keep you from moving forward. These emotions are normal, and great agents help their buyers get through them.

What makes you nervous when you think about buying your first home?

Connect with an agent so you have an expert on your side to explain everything along the way.

If you’ve been holding off on buying a home because of high mortgage rates, you might want to take another look at the market. That’s because mortgage rates have been trending down lately – and that gives you a chance to jump back in.

Mortgage rates have been declining for seven straight weeks now, according to data from Freddie Mac. And the average weekly rate is now at the lowest level so far this year (see graph below):

While that may not sound like a significant shift, it is noteworthy. Because the meaningful drop from over 7% to the mid-6’s can change your mindset when it comes to buying a home. Especially when the forecasts said we wouldn’t hit this number until roughly Q3 of this year (see graph below):

Why Are Rates Coming Down?

According to Joel Kan, VP and Deputy Chief Economist at the Mortgage Bankers Association (MBA), recent economic uncertainty is playing a role in pushing rates lower:

"Mortgage rates declined last week on souring consumer sentiment regarding the economy and increasing uncertainty over the impact of new tariffs levied on imported goods into the U.S. Those factors resulted in the largest weekly decline in the 30-year fixed rate since November 2024."

And the timing of this recent decline is great because it gives you a little bit of relief going into the spring market. Just remember, mortgage rates can be a quickly moving target, so you should expect some volatility going forward. But the window you have as they’re coming down right now might be the sweet spot for your purchasing power now.

What Lower Rates Mean for Your Buying Power

Even small changes in rates can make a difference to your monthly payment. Here’s how the math shakes out. The chart below shows what a monthly payment (principal and interest) would look like on a $400K home loan if you purchased a house when rates were 7.04% back in mid-January (this year’s mortgage rate high), versus what it could look like if you buy a home now (see below):

In just a matter of weeks, the anticipated payment on a $400K loan has come down by over $100 per month. That’s a significant savings. When you’re making a decision as big as buying a home, every bit counts.

Just remember, shifts in the economy drove rates down faster than expected. But that can change, making rates volatile in the days and months ahead. So, if you’re waiting for rates to fall further before you buy, think hard about the current window of opportunity if you’re ready to act.

Bottom Line

Mortgage rates have dipped, giving buyers a bit more immediate breathing room. If you’ve been waiting for rates to ease before jumping in, this could be your window.

Would a lower monthly payment make buying a home feel more doable for you?

Connect with an agent to break down the numbers and find out.

After several years of rising home prices and volatile mortgage rates, it looks like the housing market will start to head in a more normal direction in 2025 – at least according to the latest forecasts. And if you’ve been thinking about making a move, that means the uncertainty that could’ve been throwing off your plans may be coming to a close.

 Here’s a look at the latest expert forecasts on two of the biggest factors expected to shape the market in the year ahead.

 Will Mortgage Rates Come Down?

 Everyone’s keeping an eye on mortgage rates, and they’re projected to settle in the mid-6% range by the end of the year (see chart below):

But remember, rate projections will continue to shift as new information becomes available. Expert forecasts are based on what they know right now. If there’s increasing uncertainty around inflation, employment, government policies, or other key economic drivers, mortgage rates will move. So, don’t get caught up in the exact numbers or try to time the market. Instead, focus on the fact that a bit more stability in rates isn’t a bad thing – and even a small change can help your bottom line. 

A trusted lender and your RE/MAX^® agent will make sure you always have the latest data and the context to understand what it really means for you and your monthly payment. 

Will Home Prices Fall? 

The short answer? Not likely. Home prices are projected to keep rising in most areas – just at a slower, more normal pace. If you average the expert forecasts together, you’ll see prices are expected to go up by about 2.7%, with the majority of the projections hitting somewhere in the 3 to 4% range by the end of the year. And that’s a much more typical and sustainable rise (see graph below):

So, don’t expect a sudden drop that’ll score you a big deal if you’re thinking of buying this year. While that may sound disappointing if you’re hoping prices will come down, refocus on this. It means you won’t have to deal with the steep increases the market felt in recent years, and you’ll also likely see any home you do buy go up in value after you get the keys in hand. And that’s a good thing.

Prices normalizing is a welcome sign after years of unsustainable home price growth. It means we’re moving into a healthier market. And that’s something we haven’t been able to say in a while.

And if you’re wondering how it’s even possible prices are still rising, here’s your answer. It all comes down to supply and demand. Even though there are more homes for sale now than there were just a year ago, there still aren’t enough houses on the market to keep up with all the buyers out there.

Keep in mind, though, the housing market is hyper-local. So, this will vary by area. Some markets will see even higher price appreciation. And some may see prices level off or even dip slightly. In most markets though, prices will continue to rise (as they usually do).

If you want to find out what’s happening where we live, you need to lean on your local RE/MAX^® agent who can explain the latest trends and what they mean for your plans.

Bottom Line

The housing market is shifting, and the experts say 2025 will move toward a more normal, healthier pace for the year. With rates stabilizing and home prices rising at a more typical and sustainable rate, it’s all about staying informed and making a plan that works for you.

What mortgage rate are you waiting for to make your move? Tell me your number, and I’ll show you how the math works out for your monthly mortgage payment. It may be more attainable this spring than you think.

There’s one essential step in the homebuying process you may not know a whole lot about, and that’s pre-approval. Here’s a rundown on what it is and why it’s so important to take care of before you start looking at homes with your RE/MAX^® agent. 

What Is Pre-Approval?

Pre-approval is like getting the green light from a lender. It gives you a sense of how much they’re willing to let you borrow for your home loan. To determine that number, a lender starts by looking at your financial history. Here are some of the documents they may ask you for during this process:

• W-2s and tax returns
• Pay stubs and bank statements
• Investment account statements (if applicable)
• History of where you’ve lived

 The result? They’ll assess your financial situation, and you’ll get a pre-approval letter showing what you can borrow. Keep in mind, any changes to your finances can affect your pre-approval status. So, after you receive your letter, avoid switching jobs, applying for new credit cards or other loans, co-signing for loans, or taking money from your savings.

How It Helps You Determine Your Borrowing Power

This year, home prices are expected to rise moderately in most markets, and mortgage rates are stabilizing, but still volatile. And since affordability continues to be tight, it’s a good idea to talk to a lender about your home loan options and how today’s changing mortgage rates will impact your monthly payment.

The pre-approval process is the perfect time for that discussion. Since it determines the maximum amount you can borrow, pre-approval also helps you figure out your budget. And keep in mind, you may get approved for more than you feel comfortable borrowing, so use this time to decide what you can afford in your monthly mortgage payment as you factor in taxes, insurance, and other costs you will incur as a homeowner. Once you know what works for you financially, partner with your RE/MAX^® agent to tailor your search to homes that match your budget. That way, you don’t fall in love with a house that’s realistically outside of your comfort zone.

How It Helps You Stand Out 

Once you find a home you want to put an offer on, pre-approval has another big perk. It not only makes your offer stronger, it shows sellers you’ve already undergone a credit and financial check. So, when a seller sees you’re pre-approved, they view you as a much more serious buyer and may be more attracted to your offer because it is more likely to go through. And for a seller who is ready to close a deal, an offer that’s backed by pre-approval makes a big difference. 

As Greg McBride, Chief Financial Analyst at Bankrate, says:

“Preapproval carries more weight because it means lenders have actually done more than a cursory review of your credit and your finances, but have instead reviewed your pay stubs, tax returns and bank statements. A preapproval means you’ve cleared the hurdles necessary to be approved for a mortgage up to a certain dollar amount.”

Bottom Line

If you’re planning on buying a home, getting pre-approved for a mortgage should be one of the first things on your to-do list. Not only will it give you a better understanding of your borrowing power, it’ll put you in the best position possible to make a strong offer when you find a home you love.

Do you know what else you need to do to make sure you’re ready to buy? Reach out, and I’ll make sure you don’t skip any of the key homebuying steps.