The housing market has been anything but predictable lately. From fluctuating mortgage rates to rising home prices, it’s understandable if you’ve been wondering whether now is really the right time to buy or sell a home. Uncertainty has left many people on the sidelines, trying to time the market or waiting for more favorable conditions.
But amidst all the noise, there is one reliable source that can help provide clarity: housing market experts. As more data becomes available, these professionals are sharing their forecasts for the rest of the year, and the outlook may be more encouraging than you think.
According to a recent piece by Business Insider, there’s reason for optimism:
“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 explore what this means for you and what key market trends experts are watching as we move through 2025.
Mortgage rates have been a major pain point for buyers over the past year. After climbing steeply in recent quarters, the average rate for a 30-year fixed mortgage finally seems to be showing signs of easing. While no one is predicting a dramatic drop, most housing economists agree that a modest decline could be on the horizon.
This is driven largely by an improving economic picture, which includes signs that inflation is slowly coming under control. As a result, the Federal Reserve is expected to ease back on aggressive rate hikes, which would help bring mortgage rates down. Forecasts suggest rates could settle into the mid-6% range by the end of the year.
Though that might not sound like much, even a small decline in interest rates can make a meaningful difference in your monthly mortgage payment. For buyers, that means slightly better affordability and more flexibility in your home search. It also gives current homeowners considering a move an added incentive to enter the market.
However, it’s important to remember that mortgage rates are still tied closely to broader economic factors. Employment numbers, inflation data, and global economic shifts can all influence where rates go next. So while the trend may be favorable, the path is still expected to be somewhat volatile.
The conversation around housing inventory has shifted noticeably since the start of the year. After a long stretch of tight supply, more homes are finally hitting the market. Many of the homeowners who chose to wait during last year’s peak rate environment are deciding that it’s time to move forward, regardless of market conditions.
This increase in listings is already making a difference in many areas. Active inventory is rising year over year, and if this trend continues—as experts anticipate—it could make the homebuying process far less competitive.
Lance Lambert, co-founder of ResiClub, notes:
“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.”
If mortgage rates continue to ease, more homeowners who’ve been locked into low-rate mortgages may feel comfortable selling and buying again. This would further boost the number of available homes and offer buyers more choices and less pressure.
For sellers, this is also positive news. While you may face more competition, increased inventory signals a healthier, more balanced market—especially when buyer demand stays strong.
With more homes entering the market, the pace of home price growth is starting to cool. That doesn’t mean prices are falling across the board, but it does mean we’re moving away from the rapid spikes that characterized the pandemic-era market.
The latest forecasts from major housing economists show average home price growth around 2% for the year. While still positive, this slower pace of appreciation could give buyers a much-needed breather.
This moderation, coupled with the prospect of slightly lower mortgage rates, may improve overall affordability and increase your buying power. You may not find drastic price drops, but you also won’t be facing the frantic bidding wars of the past few years in many areas.
Of course, real estate remains highly localized. What’s true for one city or neighborhood may not apply to another. Certain markets with strong demand and limited inventory may still see above-average price growth, while others could see prices stabilize or even dip slightly. That’s why working with a knowledgeable local real estate agent is crucial—they can help you interpret the data and spot opportunities in your specific area.
It’s easy to feel overwhelmed when the market sends mixed signals. But if you’ve been debating whether to make a move, the latest expert insights suggest this year may present a window of opportunity. A combination of gradually improving affordability, rising inventory, and more manageable price growth could make the path to homeownership smoother than it’s been in a while.
For sellers, there’s reason to be encouraged too. Buyer demand is still strong, especially with Millennials and Gen Z entering their prime homebuying years. If you’re listing a home in a desirable area and pricing it correctly, chances are you’ll find serious buyers ready to act.
Ultimately, real estate decisions are personal. Whether you’re moving for a job, expanding your family, downsizing, or simply chasing a lifestyle change, the right time to move is when it aligns with your goals—not just the market.
But knowing that the market fundamentals are trending in a positive direction can offer some much-needed peace of mind. If you’re still unsure, start by speaking with a trusted local real estate agent who can help assess your options and guide you through the process.
Bottom Line
Despite a turbulent couple of years in housing, experts now suggest that conditions are stabilizing. Mortgage rates are expected to ease slightly, more homes are coming onto the market, and price growth is moderating. While the landscape is still evolving, there are real reasons for buyers and sellers alike to feel more confident about making a move.
With the help of an experienced agent and a clear understanding of current trends, you can make decisions that serve your financial future—and find the right home in the process.