Housing Market Forecasts for the Rest of 2025

If you’ve been following the market, you’ve probably noticed some changes already this year. So what can you expect for the rest of 2025? Here’s what the experts are saying about home prices, mortgage rates, and what it all means for you.

Will Home Prices Drop?

Many people are hoping for a big drop in home prices, but experts say that’s unlikely.

• Yes, price growth is slowing down – but that doesn’t mean we’re heading for a crash.

• Prices are still expected to rise, just more slowly. Most experts predict a 1.5–2% increase in home prices for 2025.

• Some areas are seeing small dips (about -3.5%), but that’s nothing like the 20% crash back in 2008.

• And keep this in mind: Home prices are still up 55% over the past 5 years, so even small declines are being absorbed.

🔍 Bottom line: Don’t wait for a crash. It’s not coming. Prices are likely to stay stable or rise slightly, depending on your location.

What About Mortgage Rates?

Many buyers are also waiting for mortgage rates to fall — but that drop might not happen anytime soon.

• Experts don’t expect a major drop in 2025.

• Most projections say rates will stay in the 6% range, similar to what we’re seeing now.

• According to Yahoo Finance:
  “If you’re looking for a big drop in interest rates, you’ll likely be left waiting.”

📌 That means if you need to buy or sell, it’s probably better to work with current rates rather than hold off and risk missing your window.

The Big Picture for Buyers and Sellers

This market is balanced, not booming or crashing. Here’s what that means:

✅ Home prices are still going up — but slowly.
✅ Mortgage rates are steady — and not expected to drop much.
✅ Local trends matter more than ever.

Bottom Line

If you’re thinking about buying, selling, or both, focus on your needs, not just the headlines. A local real estate expert can help you make smart moves in today’s changing market.

Finding ways to make your credit score better could help you get a lower mortgage rate. When you’re ready to get the process started, let’s connect.