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It’s hard to believe that the year 2025 is already half over. People thought this year would bring cheaper home loans, lower house prices, and more homes to buy.
Experts say the U.S. economy is uncertain, which is slowing down the buying and selling of homes.
Additionally, home loan rates have remained close to 7% throughout the year, which is keeping both homebuyers and sellers on the sidelines.
The Federal Reserve, which helps control the money supply in the U.S., has been reluctant to make significant cuts due to inflation.
The Mortgage Market is Stuck
Many economists have predicted a better year for mortgage rates in 2025.
So far, though, the mortgage market has not cooperated.
Between January 1 and June 26, when the most recent data on the mortgage market was released, the 30-Year Fixed-Rate fluctuated between 6.60% and 7.26%.
The narrative for much of the spring and now into the summer is that the mortgage market is stuck because uncertainty is preventing the expected downward pressure on the mortgage market, making it difficult to predict when that change could occur.
If mortgage rates do ease this year, more buyers will likely enter the market. More borrowers are already applying for mortgages than a year ago. In the week ended June 27, for example, there was a 16% increase in mortgage applications compared to the same time a year earlier, according to the Mortgage Bankers Association.
Home Price Have Continued to Grow
Unlike home prices nationally, where the market is starting to cool, home prices in our area continue to climb.
As of June, the median home price rose 5.6% compared to a year earlier, according to the latest data from the Global MLS.
In number terms, the median price for all homes — including single-family properties, condos and townhouses — increased by $27,600 to $327,600.
Bottom Line
Increased sales prices coupled with high interest rates are keeping both buyers and sellers on the sideline.
“The mortgage rate is the magic bullet, and we are just waiting and waiting as to when that could come down,” Lawrence Yun, chief economist at the National Association of Realtors, said during a presentation in June.
That being said, sellers who are willing to participate in this market are experiencing record-high sales prices and extremely favorable terms.
So, If you are thinking about selling, you can request a free copy of our Max Price Seller Guide with bonuses:
