Looking to Buy a Home in 2025? Here’s What Interest Rates Are Predicted to Do
We’re a few weeks into the new year, and the real estate market is already showing promise. If you’re considering buying a home in 2025, understanding what’s happening with interest rates and the housing market can help you make the right decision. We spoke to local mortgage professionals in Sanford, Southern Pines, and surrounding areas to gather their predictions and advice.
Insights from Amber Cameron at Right By Your Mortgage by Fidelity Bank
Amber shared a positive outlook for homebuyers in 2025:
Interest Rates: Mortgage rates have come down slightly, which is encouraging for buyers.
Housing Costs: Home prices are expected to continue rising, making it critical to act sooner rather than later. Amber advises, “It’s always a better time to buy now and refinance later when interest rates drop.”
Construction Loans: For those considering building, a construction loan offers flexibility. You won’t lock in a rate until about 60 days before the home’s completion, allowing time for potential rate improvements.
Amber is an excellent resource for anyone looking to finance a home!
Right Image - 405 Bridgewater Drive, Sanford NC home for sale | Left Image - Custom Home in Carbonton Cove Neighborhood
Predictions from Chet Mann at Guild Mortgage
Chet Mann, Area Sales Manager and Loan Originator, provided additional insights:
Rate Stability: Mortgage rates are likely to hold steady until spring 2025.
Why Buy Now?: Chet recommends buying now and refinancing later. He explains, “As rates drop, home prices typically rise, so waiting may cost you more in the long run.”
Market Activity: Despite fluctuating interest rates, Guild Mortgage has experienced a 25% year-over-year increase in loan activity, signaling strong buyer interest.
Long-Term Benefits: Locking in a 30-year fixed-rate mortgage now provides stability and the opportunity to refinance when rates decline.
Chet’s expertise and dedication make him a trusted guide through the home financing process.
Right Image - 405 Bridgewater Drive, Sanford NC home for sale | Left Image - Custom Home in Carbonton Cove Neighborhood
Is 2025 the Year to Buy a Home?
The big question for many is whether 2025 is the right time to make a move. According to experts and market trends, the answer is yes—but with some important caveats.
Pent-Up Demand: As interest rates fluctuate, many households are poised to act on changes in jobs, finances, or family needs. If rates fall faster than expected, pent-up demand could drive a surge in transactions.
Affordability: Mortgage rates fell briefly in late 2024 but have since climbed back to nearly 7%. Experts anticipate more fluctuations in 2025, creating opportunities for refinancing during dips.
According to a US News article, while rates remain relatively high, the market could see a return to more typical activity levels if economic conditions align.
Zillow’s Predictions for 2025
In a recent article by Skylar Olsen, Zillow forecasted a moderate but steady improvement in the housing market:
Home Value Growth: A predicted 2.6% increase in home values, similar to the pace seen in 2024.
Sales Volume: Zillow expects 4.3 million existing home sales, slightly up from previous years.
Market Swings: Buyers should brace for ups and downs in mortgage rates, with refinancing opportunities during lower-rate periods.
Build with T.L. Stewart Builders
At T.L. Stewart Builders, we’re here to help you navigate the 2025 housing market with confidence. Whether you’re looking to purchase an existing home or build your dream house, we offer various options—including rate buy-downs—to ensure you get the best deal possible.
Explore our available homes here or consider building a custom home with us. We’d love to discuss your vision, budget, and plans to make your dream a reality.
Inquire today or call us at (919) 774-8714 to get started!