If you’ve been following the housing market, you’ve probably noticed things are shifting. So what’s in store for the rest of 2025? Let’s take a look at what the experts are saying about home prices, mortgage rates, and what it all means for you.
Are Home Prices Going to Drop?
Many buyers are hoping prices will fall soon — especially with some headlines pointing to slight dips in certain areas. But a full-on crash? Experts say that’s not likely.
According to the National Association of Home Builders (NAHB), home price growth is slowing due to higher mortgage rates and more inventory. However, that doesn’t mean prices are going to tumble. Instead, the national average is expected to rise modestly — around 1.5% to 2% by the end of 2025.
While some local markets have seen minor declines (averaging around -3.5%), that’s nothing compared to the nearly 20% drop during the 2008 crash. Plus, home values are still up significantly — about 55% nationally over the past five years, based on data from the Federal Housing Finance Agency (FHFA).
Bottom line: Prices aren’t falling off a cliff. They’re just cooling, and trends will vary by location. If you’re waiting for a big price drop, you might be waiting in vain.
What’s Happening with Mortgage Rates?
A lot of buyers are holding off, hoping for lower rates. But will they actually go down?
Probably not much. According to Yahoo Finance and other experts, mortgage rates are expected to remain steady throughout the rest of the year — hovering in the mid-6% range, similar to where they are now. The Federal Reserve’s actions and broader economic indicators suggest we’re unlikely to see significant drops any time soon.
If you’re delaying your plans while waiting for better rates, you could be missing out. Working with a mortgage professional can help you explore your options and create a strategy that works for today’s market.
What This Means for Buyers and Sellers
Whether you’re planning to buy, sell, or do both, today’s market calls for a solid strategy. Home prices are still rising (just more slowly), and rates are holding steady. It’s a far cry from a boom or bust — instead, we’re in a period of moderation.
Final Thoughts
Rather than chasing headlines or trying to predict the market, focus on your own needs and goals. The best move is to work with a knowledgeable real estate expert who can help you navigate current conditions and make informed decisions in your local market.
Source: Keeping Current Matters
Experienced Chief Operating Officer with a 26 + year demonstrated history of working in the banking industry. Skilled in all aspects of the residential mortgage market . Strong business development professional with a Bachelor of Science (BS) focused in Business Administration and Management, from St. Joseph College. A direct endorsement underwriter and a licensed Mortgage Loan Originator.
