If you are wondering what will happen in the housing market for the rest of the year, keep reading to see what the experts are saying.
Interest Rates
Experts are now anticipating a normalization in rate levels but not necessarily a substantial decrease. Although this could be disappointing, the upside is that there is no expectation of an increase in interest rates. Economic performance may very well stand as the most significant influence on mortgage rate levels.
As of the end of May 2025, the average rate on a conventional loan, 30-year mortgage, from multiple sources, is 6.9%. (6.94 Bankrate, 6.92% Mortgage Bankers Association, 6.89 Freddie Mac, 6.87 Optimal Blue).
Housing Inventory
The nationwide housing inventory saw a 4.4 month supply. According to data from National Association of Realtors (NAR), this is up from 4.0 months from one year ago. This means more flexibility for buyers but depending on the area, it can still be a seller’s market.
Home Appreciation
NAR is predicting a 3% increase while Fannie Mae forecasts a 4.1% rise. According to the latest Case-Shiller Index, home-price growth increased in March 2025 by 3.4 percent. Some markets will see a stronger appreciation due to affordability factors whereas more popular areas with limited inventory may experience higher price increases.
Folks are beginning to accept the current mortgage rates. Prospective homeowners are stepping back into action to make their home purchase and are no longer delaying their decisions. In summary, expect a generally stable housing market for the remainder of 2025. 
Interest Rates
Experts are now anticipating a normalization in rate levels but not necessarily a substantial decrease. Although this could be disappointing, the upside is that there is no expectation of an increase in interest rates. Economic performance may very well stand as the most significant influence on mortgage rate levels.
As of the end of May 2025, the average rate on a conventional loan, 30-year mortgage, from multiple sources, is 6.9%. (6.94 Bankrate, 6.92% Mortgage Bankers Association, 6.89 Freddie Mac, 6.87 Optimal Blue).
Housing Inventory
The nationwide housing inventory saw a 4.4 month supply. According to data from National Association of Realtors (NAR), this is up from 4.0 months from one year ago. This means more flexibility for buyers but depending on the area, it can still be a seller’s market.
Home Appreciation
NAR is predicting a 3% increase while Fannie Mae forecasts a 4.1% rise. According to the latest Case-Shiller Index, home-price growth increased in March 2025 by 3.4 percent. Some markets will see a stronger appreciation due to affordability factors whereas more popular areas with limited inventory may experience higher price increases.
Folks are beginning to accept the current mortgage rates. Prospective homeowners are stepping back into action to make their home purchase and are no longer delaying their decisions. In summary, expect a generally stable housing market for the remainder of 2025.
Keep in mind that if you decide to buy this year and the interest rates drop in a year or two, you can look into refinancing your home. If the rates were to increase over the years, then you've benefitted from buying now.
If you're ready to step away from the sidelines and buy your first home or your next home, give me a call. If you aren't sure where to start, I am happy to guide you through the process.
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901-239-3770
662-403-4200
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