Predictions of Mortgage Rates and Home Prices in 2025

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Whether you're planning to buy or sell, here's an overview of expert predictions and how they might influence your decision. The outlook for the 2025 housing market is positive for both buyers and sellers, driven by two key factors: mortgage rates and home prices.

Mortgage Rates Experts foresee a decline in mortgage rates throughout 2025. After a period of significant hikes, this anticipated drop should make home buying more affordable, encouraging more buyers to enter the market. While the decline may not be smooth or steady, the overall trend is expected to be favorable. As affordability improves, buyers who were previously hesitant may re-enter the market, increasing competition and demand. This shift is likely to bring both more buyers and sellers back into the game. As Charlie Dougherty, Director and Senior Economist at Wells Fargo, notes: "Lower financing costs will likely boost demand by pulling affordability-crunched buyers off of the sidelines."

Home Prices Despite the drop in mortgage rates, home prices are expected to rise at a more moderate pace of around 2.5% nationwide. This slower increase marks a shift from the rapid price surges of recent years, signaling a healthier, more sustainable market. The rise in home prices will largely be driven by renewed buyer interest. However, if more sellers feel less "rate-locked," an uptick in inventory could help temper these price increases.

Local Market Differences It's important to remember that national trends may not reflect conditions in every local market. Some regions may experience faster price growth, while others could see price declines. To fully understand the dynamics of your specific area, it's essential to consult with a local real estate expert.

Conclusion In summary, 2025 is expected to offer a more balanced housing market. With lower mortgage rates improving affordability and home prices growing modestly, both buyers and sellers stand to benefit. If you're thinking of making a move, working with a knowledgeable local agent will help you navigate these trends effectively.

Beth Dickerson

Boston, MA

Primary phone
(617) 510-8565
Email
[email protected]
Address
277 Dartmouth St. , 2nd Floor,
Boston, MA 02116

About The Author

One of Boston’s most reputable real estate brokers, Beth Dickerson has achieved more than $2 billion in sales and thousands of successful real estate transactions over her nearly thirty-year tenure. Beth has received national acclaim from the real estate industry and represents some of the most prestigious residents and properties across Massachusetts. Her enduring record as a top producer comes from the intuitive gift of sensing her clients’ needs. She has built a business that is referral-based at its core—a testament to her relationship-driven approach and penchant for exceeding expectations. It is this nuanced expertise that Beth leverages to guide many of her clients-turned-friends through some of the greatest milestones of their lives.

Beth was the proprietor of her own real estate company before joining the residential division of R. M. Bradley in 1993, where she was a top producer for more than a decade. In 2003, she founded her own boutique real estate firm, Dickerson Real Estate, before merging with Gibson Sotheby’s International Realty in 2007. Today, Beth attributes her success to her comprehensive marketing and advertising strategies, exclusive contact network, and unparalleled insight into neighborhoods like Back Bay, Beacon Hill, the South End and Waterfront. With an understanding that no two clients are alike, she works with clients in all phases of life—from first-time buyers to luxury developers, seasoned sellers and beyond. Beth offers clients the resources to aggressively market their property locally, nationally and globally, and her attention to detail, drive and enthusiasm are unmatched.

Beth has appeared in prestigious media outlets including The Wall Street Journal, Mansion Global, The Boston Globe, and Boston magazine, and was prominently featured as Greater Boston’s real estate expert on WCVB Chronicle in 2020. She has had the honor of serving as President of the Downtown Council of the Greater Boston Real Estate Board. For over ten years, she has been a Co-Chair and Committee Member for the Massachusetts General Pediatric Hospital for Children’s Storybook Ball. She serves as a Board Member of the Community Music Center of Boston and a member for the Perkins School for the Blind, Emerald Necklace Park Conservancy, Justine Liff Luncheon, Youth Villages and the Boys & Girls Club of Boston, among dozens of other organizations throughout the Boston area.

A long-time resident of Boston’s Back Bay, Beth was an active member of the community as she raised her two children: she served as treasurer of the Clarendon Street Playground and was an avid supporter of the Hill House Community Center.