The Federal Reserve continues lowering short-term interest rates. At its latest meeting on Dec. 18, it once again lowered them by 0.25%. As a result, overall inflation has been cooling in the last two years. And the presidential election has passed.
It would seem that conditions are consolidating for a housing market rebound.
“We’ve seen after presidential elections — and it doesn’t matter who wins — that there’s usually a slight boost in home sales,” Lawrence Yun, chief economist of the National Association of Realtors, said at a recent forum. “It removes some uncertainty.”
But when you examine the 2025 housing market as a whole, including mortgage rates, rising home prices, and an undersupply of houses for sale — is it a good time to buy a house?
In this article:
Read more: Is it a buyer’s market or seller’s market? How to tell the difference.
A major piece of the puzzle? Mortgage rates. While easing lower over the past few weeks, a sub-6% level remains elusive.
In the past year, 30-year mortgage rates dipped to a low of 6.08% in late September but met resistance in breaking lower. According to Freddie Mac, the high-water mark over the same period has been 7.22%.
NAR’s Yun believes that if the government deficit continues, mortgage rates will not go down to the 4% range, as seen in Donald Trump’s first term as president.
“With a large budget deficit, there’s less mortgage money available. The government is borrowing so much of its money,”…
