Is Now the Time to Reconsider Buying? Prices and Rates Suggest It Might Be

Good News for Buyers: Prices and Mortgage Rates Are Finally Easing

A recent survey from Bank of America asked would-be homebuyers what would help them feel better about making a move. The answers had a clear theme: they want improved affordability—specifically, lower home prices and mortgage rates.

The good news? While the economy still feels uncertain, the housing market is showing real signs of adjustment in both of those areas.

Prices Are Moderating

Over the past few years, home prices climbed fast—sometimes so fast it left many buyers feeling shut out. But today, that pace has slowed down.

To put it in perspective:

• From 2020 to 2021, home prices rose about 20% in a single year.

• Now, experts are projecting single-digit increases for 2025—a much more normal pace.

That’s a major shift from the double-digit spikes we saw earlier this decade. Prices aren’t crashing, but they are stabilizing. And for buyers, that’s good news. A slower pace makes budgeting easier and less stressful.

Just remember: housing is local. Some markets may still see prices rise, while others could experience small dips.

Mortgage Rates Are Easing

At the same time, mortgage rates have come down from their recent highs, making it a bit easier for buyers to jump back in.

As Lisa Sturtevant, Chief Economist at Bright MLS, explains:

“Slower price growth coupled with a slight drop in mortgage rates will improve affordability and create a window for some buyers to get into the market.”

Even a small drop in rates can make a meaningful difference in your monthly payment. And while rates will likely still fluctuate, the overall outlook is encouraging.

Industry forecasts show mortgage rates staying in the low-to-mid 6% range for the rest of 2025—and potentially dipping lower as we move into 2026, depending on how the broader economy performs.

Why This Matters

Confidence in the economy may be low, but the housing market itself is showing signs of balance. Home prices are moderating. Mortgage rates are easing. And that combination could make the market feel a little more approachable again.

These shifts may not erase affordability challenges altogether, but they do open new opportunities—especially if you’ve been waiting for conditions to improve before making a move.

Bottom Line
The two biggest concerns for today’s buyers—home prices and mortgage rates—are both moving in the right direction.

If you’ve been waiting for a window to re-enter the market, this could be it. Connect with a trusted local real estate agent to walk through what’s happening in your area and what these trends mean for your home search.

Amber Johnson, Founder
Pillar Real Estate
805.835.3425
[email protected]
1345 Park St. Paso Robles, CA 93446
DRE# 01925434