Should You Buy Now or Wait? Navigating the Housing Market Amid High Mortgage Rates

Are you thinking about buying a home in 2025? You’re not alone, but it’s a tricky time to make that call. Mortgage rates are hovering near multi-year highs, and home prices remain steep in many markets. For potential buyers, the big question is: Should you lock in now or wait it out? In this post, we’ll walk you through what’s driving the market, what mortgage interest rate predictions by experts are, and how you can make the smartest move for your situation.

Is 2025 a Good Year To Buy a Home?

Buying a home is a deeply personal decision, and often the biggest financial commitment most people will ever make. Because it’s such a major investment with long-term implications, it’s crucial to ensure your financial position is solid.

Before making your home purchase decision, it’s important to have a clear idea of your potential monthly payments. You can use Total Mortgage’s Mortgage Calculators to get a realistic estimate based on your down payment.

So, should you buy a home in 2025? It might not be the best time as per the mortgage interest rate predictions. Trying to “time the market” isn’t usually a smart home-buying strategy, especially with current conditions. The key is finding the right home at the right price — something you can afford that fits your family’s requirements now and in the future.

What will Homeowners in 2025 pay as the Monthly Mortgage Payment?

As per data available from Zillow, a standard home costs approximately $357,000 in February 2025. So, if a buyer makes a down payment of 20% for the home, and finances the home at a 6.7% mortgage rate (interest rate on a 30-year fixed mortgage in the final week of February 2025). The buyer would be required to pay a monthly payment of $1,854 to cover the interest and principal payment.

Let’s compare what homebuyers who bought a house in February 2024 pay as monthly payments. For a similar home, the home price would be about $348,000. With a mortgage interest rate of  6.94%, the buyer would be paying about $1,841 a month.

That’s a difference of just $13 per month, or roughly $4,680 over 30 years; not an enormous gap, but still notable.

However, Zillow’s April 2025 forecast suggests the tide may be turning. They now expect home values to decline by 1.9% this year — a reversal from their earlier forecast of a 0.6% increase. At the same time, mortgage rates are projected to settle near 6.5% by year-end, assuming no major economic shocks. If those trends continue, waiting a bit longer could improve affordability for buyers in terms of both price and financing costs.

Tips for Buyers and Sellers by Total Mortgage Experts

Whether you’re buying your first home or selling your current one, having a game plan can make all the difference, especially in a market as tricky as 2025’s. Here are some expert-backed strategies to help you make smarter, more confident moves.

Pro Tips for Homebuyers

1. Figure out your budget: It’s important to understand what you can comfortably pay on a monthly basis, given the current market conditions. Remember, your monthly payment depends on various factors like your down payment, home price, mortgage interest rate, home insurance, loan term, and property taxes.

2. Stay open about the size and location of the home: The 2025 home price should align with your budget. Be flexible about the neighborhood and the size of the property. Remember, it all comes down to what your budget can accommodate.

3. Stay informed about the housing market of your interest: Keep a close watch on how the market is behaving in the area you're targeting. Two key factors matter most—the available inventory and current pricing. Also, track how long homes are staying on the market before being sold. It’s a good idea to consult a trusted real estate agent for these insights.

4. Be patient. Stay hopeful: The secret to buying a home in 2025 is patience. It’s important to act at the right time. Since this is one of the biggest decisions of your life, there’s no need to rush. Take the time to understand your options and make informed choices.

5. Take pre-approvals from a reputed lender: Getting pre-approved is a smart way to gain an edge with sellers. Always choose a trusted and established lender for this process.

Pro Tips for Sellers

1. Stay updated on home prices in your market: You need solid market intel to secure a strong deal. Understand how and at what prices similar homes are selling in your neighborhood. If it’s a buyer’s market at your price point, be prepared to offer some flexibility or discounts to attract serious buyers.

2. Ensure your home is in the best condition: To optimize the selling process and get top dollar, invest time in improving your home’s curb appeal and overall presentation. Small upgrades & repairs can make a big difference. First impressions count—so make sure your property looks inviting both online and in person. 

3. Price your home competitively: Overpricing can push potential buyers away, while underpricing can mean losing value. The key is to price your home right, depending on current market trends, recent comparable sales, and the demand in your local area.

4. Work with an experienced real estate agent: An expert agent will assist you in setting price for your home correctly, market it effectively, and negotiate the best possible deal. Their local knowledge and experience can give you a competitive edge in a dynamic market.

5. Be flexible and open to negotiation: Today’s buyers are well-informed and have plenty of options. Being open to reasonable negotiations, offering incentives, or being a bit flexible on the closing timeline can make your listing stand out.

Final Thoughts: Should I Buy a Home in 2025?

Deciding when to buy a home in 2025 isn’t just about predicting mortgage rates — it’s about understanding your finances, the market, and your long-term goals. While rates may shift, the right strategy is knowing your affordability and readiness when the right opportunity comes along. If you're unsure about the best move, Total Mortgage can help. From mortgage calculators to expert guidance, we’ll walk with you every step of the way. Reach out to our team today and get the clarity you need to make a confident decision, whether you buy now or decide to wait.