Average 15-Year Fixed Mortgage Rate
5.86%
-0.09 month over month (June 2025)
Stay on top of national real estate trends so you can feel confident in your decisions—and make your home a blessing, not a burden.
*Last update: August 14, 2025. Next scheduled update: September 12, 2025. Sources: Realtor.com®, Freddie Mac and Fannie Mae.
Average 15-Year Fixed Mortgage Rate
5.86%
-0.09 month over month (June 2025)
Mortgage rates dipped a bit last month—good news if you’re ready to buy. A lower rate means you’ll save on your payment each month, which can make a big difference. But remember: Date the rate, marry the house. Don’t buy just because the numbers changed a little. Rates will go up and down—but finding the right home you can actually afford is what really matters.
What Does This Mean?
A mortgage is a loan to buy a house, and it comes with interest—the cost of borrowing money. When rates go up, your monthly payments go up too, and you’ll end up paying way more over time. When rates drop, borrowing gets cheaper.
You should always keep your mortgage payment at or below 25% of your take-home pay on a 15-year fixed-rate conventional loan with a solid down payment. That’s how you own your home—without it owning you.
Predicted 15-Year Fixed Mortgage Rate
5.67%
-0.19 expected by December 2025
Mortgage rates could dip by about 0.19 percentage points by the end of 2025. It’s smart to keep an eye on what experts are forecasting—but remember, rates can be as unpredictable as the weather.
If you’re financially ready, don’t let a small change (or the chance of a change) hold you back. Rates will always rise and fall, but what matters most is finding a home you love and can actually afford. You can always refinance later.
Where did we get this rate prediction?
This forecast comes from Fannie Mae, one of the largest players in the U.S. mortgage market. Their experts analyze housing, economic and mortgage trends, and they survey both lenders and consumers to predict where rates might be headed.
The key word here is might—because even with all that research, these are still educated guesses. Mortgage rate forecasts can be helpful, but they shouldn’t be the main reason you decide to buy or wait. Your own financial readiness should be the deciding factor.
Median Home Price
$439,450
+0% month over month (June 2025)
Great news, buyers: Home prices are holding steady—for the second month in a row. Since price growth is finally slowing down, that means the market is starting to shift a bit more in favor of buyers. You don’t have to stress about being priced out in the next few weeks because, for now, prices aren’t climbing as fast. Just remember: Keep your monthly mortgage payment at 25% or less of your take-home pay so your home is a blessing, not a burden.
And sellers, you’ve got one shot to price your home right. Partner with a trusted expert from day one to avoid painful price cuts later. First impressions (and that first listing price) matter more than you think.
What Does This Mean?
Buying or selling your home is one of the biggest financial decisions you’ll ever make—and price matters. To get the best deal or the most offers, you need to understand what’s happening in your local market.
Here’s how home prices typically work: When there are more homes for sale than buyers, prices usually drop. But when more people are looking to buy than there are homes available, prices go up.
Total Homes for Sale
1,102,787
+25% year over year (July 2024)
Buyers had more options on the market in July, with the number of homes for sale jumping 25% compared to this time last year. That’s over 1.1 million houses on the market—making it the third month in a row with more than a million active listings. It’s also the 21st straight month of year-over-year inventory growth (even though we’re still about 13% below pre-pandemic levels).1
What Does This Mean?
The number of houses for sale might not seem like a big deal—but it has a huge impact on home prices. When there’s more inventory on the market, buyers have options, and that helps bring prices down. But when inventory is low, competition heats up and prices often rise.
Median Days on Market
58
+5 days month over month (June 2025)
In July, homes sat on the market about a week longer than they did this time last year. That’s the 16th month in a row it’s taken longer to sell a house compared to the year before.
Since home prices are still high, some buyers are holding off. That’s slowing the market down—and in some places, it’s starting to shift things in favor of buyers, giving them more power to negotiate a better price.
What Does This Mean?
How fast homes sell shows how competitive the market is. If they’re selling quickly, the market’s hot—and buyers need to act fast to close a home deal. Sellers can also expect a quick sale, often at asking price. But if homes sit longer, buyers may have more leverage to negotiate.
Is It a Buyer’s Market or a Seller’s Market?
One easy way to tell if the market favors buyers or sellers is to check the months of supply. That’s how long it would take for all the listings on the market to get snatched up at the current sales pace. Learn more about buyer’s and seller’s markets here.
*Last update: August 21, 2025. Next scheduled update: September 23, 2025. Source: National Association of REALTORS®, 2025.
Difference Between a Buyer’s and Seller’s Market
You can buy or sell successfully in any kind of market. But the best time to make a move is when you’re financially ready. Whether it’s a buyer’s or a seller’s market shouldn’t drive your decision—but it can give you a good idea of what to expect. Let’s take a look.
- Buyer's Market: There are more homes for sale than there are buyers (higher supply, lower demand). Buyers may see less competition, more time to shop, purchase incentives, better negotiating terms and even price cuts.
- Seller’s Market: There are fewer homes for sale than there are buyers (lower supply, higher demand). Sellers may receive multiple offers, close faster, get stronger contract terms, and sell at higher prices.
- Neutral Market: A housing supply of four to six months is generally considered a neutral or balanced market, though not all economists agree on the exact range. In a neutral market, home prices tend to rise at a steady pace and buyers and sellers are usually on equal footing when it comes to negotiating.
Keep in mind, this chart is based on national data for existing homes. Conditions may be different in your local market depending on what you’re looking for. Want a clearer picture of your area? Connect with a local real estate agent you can trust.
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Key Takeaways
- Mortgage rates for 15-year loans could dip to around 5.5% in the second half of 2025.
- Experts don’t expect a housing market crash, thanks to steady demand and limited supply.
- Housing inventory has risen for 20 straight months year over year, giving buyers more options.
- If you’re financially ready to buy, don’t wait—home prices are still climbing.
Learn More About Your Local Market
Whether you're buying or selling a house, you can get the inside scoop on the housing market in your area by connecting with a local pro.
If you’re thinking about buying or selling a house and wondering about the housing market, you’re not the only one. The real estate market has seen a lot of unusual trends in the past couple of years, so it makes sense that you’d want the latest market update before you make any major decisions.
Here’s the thing: Housing market predictions are about as reliable as weather forecasts. The real estate professionals make their best predictions based on data, but no one can know what’s going to happen with 100% accuracy.
Still, even though the housing market is uncertain, you can listen to what the experts are saying and make some pretty good guesses. Just remember—never let a market prediction control your housing decisions. Only your personal situation and finances should do that!
With that said, here’s the real estate market forecast.
How Low Will Interest Rates Go in 2025?
According to recent Fannie Mae forecasts, mortgage rates could dip by about 0.32 percentage points in the second half of 2025.1 But that will depend on whether the Federal Reserve decides to lower the federal funds rate, which influences mortgage rates. For context, the average 15-year fixed-rate mortgage was just under 6% at the end of July—so a 0.32 dip would bring the average rate to around 5.5%.2
That may not seem like much—but compared to the 7% highs we saw in 2023, it’s a welcome shift.
Don’t wait around hoping for a slightly better rate, though—you could miss out as home prices keep climbing. If you’re financially ready to buy, now’s the time to get started.
Want to see how a lower rate could add margin to your home-buying budget? Try our free Mortgage Calculator.
Is Now a Good Time to Buy a House?
Like I said before, the market shouldn’t determine your decision to buy a house. If you’re prepared financially, then it’s a good time to buy a home, even if inventory is limited and interest rates are high. If you’re not prepared financially, it’s not a good time, even if there’s plenty of inventory and rates are down.
You’re ready to buy a house in 2025 if (and only if) you can check off all these boxes:
- You’re debt-free.
- You have an emergency fund of 3–6 months of expenses.
- Your monthly house payment on a 15-year fixed-rate mortgage will be 25% or less of your monthly take-home pay. (Steer clear of FHA and VA loans—you’ll pay much more in fees with them.)
- You have a solid down payment. A 20% down payment is ideal because you’ll avoid paying private mortgage insurance (PMI). But 5–10% is okay if you’re a first-time home buyer (just be prepared to pay PMI).
- You can pay the closing costs up front without stealing from your down payment.
If you don’t meet these qualifications, it doesn’t matter if the market is in your favor. Buying a home would be a burden instead of a blessing. Take your time to get in a better financial position so you can buy a house the right way.
If you are ready to buy, then it’s time to hire an agent and get to work! The best place to find an awesome real estate pro is our RamseyTrusted® program. We only recommend agents who prioritize you and your goals—not their bottom line.
How Will the Housing Market Change Under a New President?
If you’re wondering how President Donald Trump will affect the housing market, the most important thing to understand is that presidents don’t directly control interest rates or housing prices—it’s all about supply and demand (we’ll talk more about that later). That means there’s only so much a new president can do to make housing more affordable.
That said, Trump does want to implement policies that could increase supply and move the needle at least a little bit. Specifically, he’s talked about wanting to make adjustments in three major areas: zoning, infrastructure and federal land policies.
- Zoning laws decide how land can be used—whether for homes, businesses or even parks. Too many zoning laws can decrease housing supply and drive prices up, while flexible zoning laws open the door for more development and investment opportunities.
- Infrastructure refers to things like roads, public transportation and schools—and it can directly impact home values. Good infrastructure makes an area more desirable, which raises property values. If a city invests in new transit lines, highways or parks, nearby properties often see a boost.
- When the government opens federal land for private development, that can also shape real estate markets. The land might be used for housing, commercial projects or even renewable energy. Having more land available can ease housing shortages and lower prices.
At the end of the day, just remember that you have a lot more control over your money than any politician does. Even if home prices come down under Trump, it’ll still be your job to pay off your debt, build an emergency fund, and save up a strong down payment. What happens in your house is way more important than what happens in the White House!
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What’s the Average House Price?
The average home sales price in the U.S. was $512,800 during the second quarter of 2025.3 But it’s typically more helpful to look at the median sales price, which was $410,800.4
Why? Because a small group of super high- or low-priced houses can throw off the average and make regular homes seem more or less expensive than they really are (something to keep in mind as you watch the average house price fluctuate in 2025). The median price, on the other hand, is the number right in the middle of all the prices.
Will the Housing Market Crash in 2025?
If you’re concerned about the housing market crashing in 2025, you can put those worries to rest. Prices are not going to start drastically going down anytime soon. In fact, the Federal Home Loan Mortgage Corporation expects prices to grow in 2025.5
The main thing to know about the housing market is that home prices are determined by inventory (also known as supply) and demand. Here’s what you can expect in each of those areas.
Housing Inventory
Housing inventory simply refers to the number of houses for sale. When fewer houses are available, buyers are willing to pay more, and sellers have more leverage to up their asking price. Simply put—low inventory leads to higher home prices. It’s a big reason why buying a home has gotten so expensive.
When it comes to housing inventory for 2025, things are currently looking up! June 2025 marked the 20th straight month of year-over-year inventory growth. Even better news: The number of homes on the market in June was 28.9% higher than a year earlier.6
Now, while inventory is increasing, it’s still nowhere close to pre-COVID levels. So you shouldn’t get your hopes up about seeing any kind of major price adjustment. But this is still a great sign because it means the market is getting healthier overall.
Buyer Demand
Buyer demand in real estate simply refers to how many people are looking to buy a home—and how eager they are. One way to gauge demand in the market is by how many homes sell for more than their listing prices. In June 2025, that number was 31%.7
Overall, buyer demand has stayed steady over the last two years. Since 2022, demand has gone up during the summer and down during the winter (rinse and repeat). We could see demand increase in 2025, though, if interest rates get lower.
What Does the 2025 Housing Market Mean for Buyers and Sellers?
Is It a Buyer’s Market?
We’re not quite in a buyer’s market yet—but we’re moving in that direction as inventory continues to grow. A buyer’s market happens when there are more homes for sale than there are buyers. And while we’re not there yet, the increase in supply means the market isn’t as hot as it was over the past few years. If you’re looking to buy, you’ll have more options—and a little less competition. Yes, prices are still high, but the frenzy has definitely cooled.
Is It a Seller’s Market?
We’re moving out of a seller’s market and into a more balanced one. A seller’s market happens when there are more buyers than homes for sale. If you’re planning to sell, you might start seeing fewer offers and more flexible terms. That’s why it’s important to make sure your asking price makes sense for today’s market. It’s easy to overprice your home because of its sentimental value to you—or underprice it by rushing to sell to an iBuyer. A good agent will help you price it right using market data and real-world experience.
For more details on these terms, check out our Market Trends page.
Will Foreclosures Increase in 2025?
Yes—the number of foreclosures will likely continue to rise in 2025. In the first half of the year alone, there were 187,659 foreclosure filings nationwide—a 5.8% increase from the same period last year.8
Here’s what that means for home sellers and home buyers:
- Home sellers: Don’t worry—your home probably won’t drop in value. Even with more foreclosures hitting the market, overall inventory is still well below pre-COVID levels. But rising foreclosures do mean more options—and more leverage—for buyers. So if you’re thinking about selling, don’t wait for inventory to build. List your home now while demand is still strong!
- Home buyers: If you’re looking to find a great deal on a foreclosure, you might have a few more options. But keep in mind, buying a foreclosed home could come with its own set of potential issues. Make sure you do your homework on the house and know what you’re getting yourself into before you buy.
How to Buy or Sell With Confidence in Any Housing Market
I know buying or selling a house is a big deal, especially after all the craziness we’ve seen in the market over the last few years, but you’ve got this!
Yes, the cost of buying a house is higher than it’s ever been before. And yes, selling a home in 2025 will come with obstacles—like high interest rates and home values pricing out a lot of would-be buyers. But even though buying or selling may be more difficult now than it was a couple of years back, it’s not impossible.
You still control your financial future. That includes real estate—no matter what’s going on in the market. And our team here at Ramsey always has your back.
If you want to learn even more about buying or selling a house, check out our all-new Real Estate Home Base! It’s full of super helpful articles, guides and calculators—basically everything you need to make confident decisions and reach your home goals. Think of it as your all-in-one real estate resource.
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ABOUT THE AUTHOR
Rachel Cruze
Rachel Cruze is a #1 New York Times bestselling author, financial expert, host of The Rachel Cruze Show, and co-host of Smart Money Happy Hour. Rachel writes and speaks on personal finance, budgeting, investing and money trends. As a co-host of The Ramsey Show, America’s second-largest talk radio show, Rachel reaches millions of weekly listeners with her personal finance advice. She’s appeared on Good Morning America and Fox News and been featured in TIME, REAL SIMPLE and Women’s Health, among others. Through her shows, books, syndicated columns and speaking events, Rachel shares fun, practical ways to take control of your money and create a life you love.
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