If you’ve been watching the housing market lately, chances are you’ve had a lot of questions. From volatile mortgage rates to rising home prices, today’s real estate landscape feels anything but predictable. That uncertainty leaves many wondering: is now really the right time to make a move?
Fortunately, the fog is starting to lift. Top housing experts are offering fresh insights into what we can expect for the remainder of 2025. And while some challenges remain, the outlook might be more optimistic than you think.
According to Business Insider:
“As mortgage rates go down this year, affordability may improve slightly for homebuyers. Inventory is also expected to grow, which should help moderate price growth and make finding a home easier.”
Let’s break that down and explore what it means for buyers and sellers alike.
1. Mortgage Rates Are Expected To Ease Slightly
After climbing to multi-year highs, mortgage rates appear to be stabilizing. While a dramatic drop isn’t on the horizon, most experts anticipate a modest decline through the second half of the year.
This matters because even a small reduction in your mortgage rate can significantly impact your monthly payment. Lower rates increase affordability and give buyers a bit more room in their budgets.
Forecasts from leading financial institutions suggest rates will settle slightly lower by year-end, assuming economic indicators like inflation and employment trends continue to stabilize.
That said, don’t wait for a magic number. Trying to time the market rarely works. Instead, focus on your own financial readiness. Work with a lender, get pre-approved, and be prepared for some fluctuation.
2. Inventory Is Trending Up
If you felt like housing options were limited over the past couple of years, you're not alone. Low inventory has been one of the biggest hurdles for buyers. But there's good news: inventory is on the rise.
More homeowners are finally choosing to list their properties. Many sat on the sidelines waiting for better conditions, but life doesn’t always wait. As people need to relocate for jobs, families grow, or retirement plans shift, more are jumping back into the market.
As Lance Lambert, Co-founder of ResiClub, puts it:
“The fact that inventory is rising year-over-year . . . strongly suggests that national active housing inventory for sale is likely to end the year higher.”
That increase in supply means buyers will likely enjoy more selection and potentially less competition. In turn, that should help ease pressure on prices and create more balanced negotiations.
3. Home Price Growth Is Slowing
Yes, home prices are still climbing—but not at the breakneck pace we saw in recent years.
Experts project moderate appreciation for the remainder of 2025. On average, the consensus across seven major forecasts points to a 2% price increase. While that might feel modest, it reflects a healthier, more sustainable market.
Rising inventory is helping cool things down. As supply grows, bidding wars become less common, and sellers have to price more competitively. That’s great news for buyers who have been priced out in the past.
Still, remember that real estate is local. Some regions may experience slightly higher appreciation, while others might even see flat or dipping prices depending on supply and demand in that area.
That’s why working with a local real estate expert is so valuable. They can offer hyper-local insight on what’s happening in your specific neighborhood.
What This Means for Buyers
If you’re planning to buy in 2025, there’s reason to feel encouraged:
More inventory means more choices and potentially fewer bidding wars.
Easing mortgage rates can increase affordability and reduce your monthly payment.
Slower price growth could offer a better entry point into the market.
While it may not be a buyer’s market just yet, the trends are shifting in your favor. And if you're financially ready, this could be a smart time to explore your options before rates or prices tick up again.
What This Means for Sellers
Thinking about selling? Don’t worry—there's opportunity for you, too.
Even with more inventory, demand for well-priced, move-in-ready homes remains strong. Buyers are still actively searching, and with prices expected to rise modestly, you can still achieve a strong return.
Just be prepared to adjust your expectations. Overpricing your home in a market with increasing supply could lead to longer days on the market or price reductions.
Partnering with an experienced real estate agent will help you price strategically, market effectively, and highlight your home’s unique value.
The Bottom Line
The second half of 2025 is shaping up to be a more balanced, stable period in the housing market. Mortgage rates are projected to soften, inventory is growing, and home price appreciation is cooling.
If you've been waiting for the right moment to act, this could be it. Whether you're buying your first home, upgrading, or selling to downsize, staying informed and working with trusted professionals is the best way to succeed in this evolving market.
At Best Option Mortgage, we’re here to guide you every step of the way. From pre-approval to closing, our team is committed to helping you navigate this market with clarity and confidence.
Let’s explore your mortgage options today. Contact Best Option Mortgage and take the next step with a team that puts your goals first.
Disclaimer: Best Option Mortgage is a DBA of ML Mortgage Corp. ML Mortgage Corp. is a state-licensed mortgage lender, NMLS ID #362312, licensed by the CA Department of Financial Protection and Innovation under the Finance Lenders Law, License #60DBO69831. For other states, visit www.mlmortgage.net. To verify licenses, visit www.nmlsconsumeraccess.org. All loans are subject to credit approval and acceptable collateral. Additional terms and conditions apply. Programs, rates, terms, and conditions may change without notice. Not all programs are available in all states. There is no guarantee that all borrowers will qualify. Restrictions may apply. This is not a commitment to lend. © 2025 ML Mortgage Corp. All rights reserved.