What To Expect from Mortgage Rates and Home Prices in 2025

Are you wondering where the housing market is headed in 2025? While no one has a crystal ball, experts are offering some positive projections, especially regarding two factors that can directly affect your buying or selling plans: mortgage rates and home prices.

Whether you're thinking about buying or selling a home in the Dallas-Fort Worth area or elsewhere, here’s a breakdown of what the experts are forecasting for 2025 and how it might impact your next move.

Mortgage Rates Are Expected To Come Down

One of the biggest factors shaping your decisions is mortgage rates. The good news? Experts predict rates will gradually ease throughout 2025. 🏡📉 While the decline won’t be a straight shot, the overall trend should be lower than the peaks we’ve seen in recent years. The reason for those bumps along the way will depend on new economic data and inflation numbers as they come in, but don’t get too caught up in every fluctuation. Focus on the bigger picture—lower mortgage rates overall.

As rates come down, homes become more affordable, meaning lower monthly mortgage payments and greater flexibility in what you can afford if you’re looking to buy. According to Wells Fargo Senior Economist Charlie Dougherty:

“Lower financing costs will likely boost demand by pulling affordability-crunched buyers off of the sidelines.”

This could bring a wave of buyers and sellers back into the market. But with this renewed activity, you’ll likely see more competition. The takeaway? If you're considering a move, now is the time to start getting ahead of the game. Lean on your real estate agent to help you understand how shifting rates are impacting the local demand in Dallas-Fort Worth or wherever you plan to make your move.

Home Price Projections Show Modest Growth

While mortgage rates are forecasted to decline, home prices are expected to rise—just at a slower, more sustainable pace than we’ve seen in recent years. Experts predict national home prices will grow by an average of around 2.5% in 2025. That’s far more manageable than the rapid, double-digit increases we’ve witnessed in past years.

What’s behind this moderate growth? As more buyers re-enter the market due to lower rates, demand will increase. However, we’ll also see more sellers listing their homes, which will help increase inventory and prevent home prices from skyrocketing like they did in previous years.

Of course, these are national averages. Depending on where you’re looking in the Dallas-Fort Worth Metroplex—whether it’s Haslet, Southlake, or Keller—the growth in home prices may vary. Some regions may experience faster price appreciation, while others could see slower growth. As Lance Lambert, Co-Founder of ResiClub, says:

“Even if the average national home price forecast for 2025 is correct, it’s possible that some regional housing markets could see mild home price declines, while some markets could still see elevated appreciation.”

This means working with a local real estate expert is key to understanding what’s happening in your specific area, so you don’t miss out on important trends that could impact your buying or selling decisions.

What This Means for Buyers and Sellers

For buyers, the combination of lower mortgage rates and modest price growth could make 2025 a more favorable time to enter the market. With lower rates, homes become more affordable, and as more listings come on the market, you’ll have a wider selection to choose from.

For sellers, while price growth may not be as extreme as in recent years, you can still expect to see appreciation in your property value. Plus, with more buyers coming back into the market, demand will help create a competitive landscape that works in your favor—especially if your home is in a sought-after area like DFW.

Bottom Line

With mortgage rates expected to decline and home prices projected to rise at a more moderate pace, 2025 is shaping up to be a promising year for both buyers and sellers.

If you’re planning to buy or sell in Dallas-Fort Worth, it’s crucial to work with a real estate expert who understands how these national trends translate locally. Let’s connect to discuss your options, so you can navigate the market with confidence and make the most of the opportunities ahead.

Elevating your home buying (or selling) experience—every step of the way! 🏡✨ realtor, best agent, real estate, Southlake, Keller, Haslet, home buyer, home seller, home value, Trophy Club, Fort Worth, new home, house, home selling, seller tips, 4wheeltorhomes, 4wheeltor, Crystal Zschirnt, Westlake, Roanoke, Justin, Northlake, Flower Mound, Argyle, Texas

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