What Buyers Need To Know About Today’s Housing Market

Thinking about buying a home right now? You’re not alone — and with so much shifting in the market, it’s smart to stay informed. Here’s a simplified look at the trends shaping today’s housing landscape and what they mean for you.

Home Prices Remain High — and May Keep Rising

The median U.S. home price is $441,000, up 1.4% from last year and 32% higher than five years ago. Affordability challenges have slowed buyer activity, causing inventory to stack up. Many sellers have noticed and are stepping back, which is helping keep prices elevated.

Mortgage Rates Are Trending Down

The average 30-year fixed rate dropped to 6.22% — near a 12-month low — driven by expectations of a Fed rate cut. Rates will likely bounce around but are predicted to stay between 6–7% this year. Even small drops can save buyers tens of thousands over a loan’s lifetime.

Why Rates Matter for Your Monthly Budget

Your interest rate directly determines your monthly payment. On a median-priced home with 20% down, costs can vary dramatically depending on the rate — from $3,021/mo at 7.16% to $2,694/mo at 5.75%. That difference adds up quickly.

It’s a Buyer’s Market… Mostly

Inventory is higher than it’s been in years, giving buyers more leverage — especially in states like Florida, Texas, and Hawaii, where months of supply are the highest. But some Midwest and East Coast markets remain tight.

On the flip side, buyer demand is near historic lows as high costs push many to wait. For well-qualified buyers, this opens the door to negotiation power and better deals.

Inflation Is the Wild Card

Economists warn inflation could inch higher due to tariff and immigration policy changes. Higher inflation = higher mortgage rates and home prices. For buyers on the fence, locking in a rate now may be wise before borrowing gets more expensive.

How to Buy Smart in an Uncertain Economy

• Stick to your budget: Make sure you have savings and room to breathe.

• Use your leverage: More inventory means more negotiating power.

• Shop rates carefully: Ask lenders about “float-down” options.

• Consider selling first: If you already own a home, it can streamline your budget and reduce risk.