Rates have plummeted this year, making owning a home a tad bit easier, as the average 30-year fixed mortgage rate went from 7.79% in October 2023 to 6.22% in November 2025. Also, 10-year- treasury yield rate has been stable, hovering between 4 and 4.3%. The Fed cut rates by 0.25% in late October 2025. Experts predict a possible additional 0.25% cut in early December, depending on employment data, as reported by Yahoo Finance.
Lack of listings has been a problem due to the “rate lock effect” — homeowners stayed put to keep low mortgage rates. Existing home sales hit 4.06 million in September 2025, up from 4 million in August. Inventory is 1.55 million homes, a 14% increase from September 2024 — about 4.6 months’ supply, as stated by Yahoo Finance.
You can negotiate repairs, closing costs, or ask for extras, especially if a house has been on the market a while. Bidding wars are less common compared to recent years.
Rent of primary residence and owner’s equivalent rent rose 0.1% from August to September 2025. The owner's equivalent rent shows how much owning a home would cost if rented. The national owner’s equivalent rent is 4% higher than last year, as per the report by Yahoo Finance. Higher rents make fixed mortgage payments look appealing because they lock costs in. Example: $1,500 rent + 4.1% increase = $60 extra/month or $720/year lost without building equity.
Demand would subside as fewer buyers would come with bids in the market. So buying before December 31 could be a great idea, and would also guarantee deduction on property taxes and mortgage interest along with discount points as well. Sellers may negotiate more to close deals before the New Year.
Inspectors, appraisers, and lenders may move faster as winter sales slow down. 2025 is generally good for buying if you have stable finances, can afford payments, and plan to stay put. Rates are under 7%, inventory is improving, and price growth is slower — all positives for buyers, as per the report by Yahoo Finance.
If you can afford the mortgage, have stable income, and plan to stay long-term, yes — rates are under 7% and inventory is improving.
Q2. Are mortgage rates going down in 2025?
Rates have slipped to the low 6% range, but future drops depend on Fed decisions; ask lenders about rate float-down options.
Check mortgage rates
Compare APR from multiple lenders instead of just the advertised rate. Ask about programs like rate float-down, which can let you get a lower rate after locking in. Example: On a $350,000 mortgage, a 6.5% vs 7% rate could save $117/month or $40,000 over 30 years.Lack of listings has been a problem due to the “rate lock effect” — homeowners stayed put to keep low mortgage rates. Existing home sales hit 4.06 million in September 2025, up from 4 million in August. Inventory is 1.55 million homes, a 14% increase from September 2024 — about 4.6 months’ supply, as stated by Yahoo Finance.
Builder deals and offers
Builders sold 652,000 homes at an annual pace in July 2025 and had 499,000 for sale. Supply equals 9.2 months, up from 7.5 months in July 2024. Builders are offering incentives like closing cost credits, interest rate buydowns, and upgrades.You can negotiate repairs, closing costs, or ask for extras, especially if a house has been on the market a while. Bidding wars are less common compared to recent years.
Home prices and rent trends
FHFA reported annual home prices fell 0.1% in July 2025. Case-Shiller index showed a 1.5% gain in August 2025, down from 1.9% in June. Prices vary by city — check local comps for negotiating leverage.Example: If a $450,000 home in Phoenix has similar homes selling at $425,000, you can negotiate down.Rent of primary residence and owner’s equivalent rent rose 0.1% from August to September 2025. The owner's equivalent rent shows how much owning a home would cost if rented. The national owner’s equivalent rent is 4% higher than last year, as per the report by Yahoo Finance. Higher rents make fixed mortgage payments look appealing because they lock costs in. Example: $1,500 rent + 4.1% increase = $60 extra/month or $720/year lost without building equity.
Demand would subside as fewer buyers would come with bids in the market. So buying before December 31 could be a great idea, and would also guarantee deduction on property taxes and mortgage interest along with discount points as well. Sellers may negotiate more to close deals before the New Year.
Inspectors, appraisers, and lenders may move faster as winter sales slow down. 2025 is generally good for buying if you have stable finances, can afford payments, and plan to stay put. Rates are under 7%, inventory is improving, and price growth is slower — all positives for buyers, as per the report by Yahoo Finance.
FAQs
Q1. Will 2025 be a good year to buy a house?If you can afford the mortgage, have stable income, and plan to stay long-term, yes — rates are under 7% and inventory is improving.
Q2. Are mortgage rates going down in 2025?
Rates have slipped to the low 6% range, but future drops depend on Fed decisions; ask lenders about rate float-down options.
