Housing Market Trends and Strategic Steps to Buying Your Dream Home

Whether you’re looking for a home this year or further down the road, understanding current housing market trends is essential for making informed decisions. By staying aware of these trends, you can better assess what falls within your price range and what will best suit your specific situation.

Mortgage rates consistently influence the housing market. Over the past several years, rates have climbed up to the 6–7% range and, while there is some possibility that rates may decrease slightly during 2025, they are expected to remain above 6%. This new normal will require buyers to adjust their expectations and budget accordingly.

As more homeowners list their properties, buyers will have more options. With mortgage rates stabilizing and home inventory increasing, there is reason to be optimistic. However, affordability will likely remain an issue for many, especially for those who have been priced out of the market due to increased prices in recent years.

There is a common misconception that new homeowners should save as much as 20% of the home price for a down payment. However, there are a variety of loan options, including some that require as little as 3.5% to 5% down. Carefully consider all the factors of your budget—both the down payment and your monthly payment—when researching loans. Consulting with a mortgage loan officer can help you identify the best option for your situation.

Sellers should maintain realistic pricing expectations and prepare for a more competitive market. With steady demand and increased listings, buyers will have more choices. Competitive pricing and a willingness to negotiate will be crucial to getting what you want out of your home.

• Review your finances, including your credit score and savings.
• Determine if you're prepared for a long-term commitment.

• Use the 30% rule to figure out how much house you can afford—keep your monthly payment to no more than 30% of your monthly take-home pay.
• Determine your monthly payments using a mortgage calculator.
• Research properties and pricing in your desired location.

• Consult a trusted loan officer about available options.
• Explore down payment assistance programs like grants, deferred-payment loans, VA or FHA loans and first-time homebuyer programs.

• Shop around at different mortgage lenders and compare rates.

• Obtain a preapproval letter to strengthen your offer.

  5. Start house hunting.
• Find neighborhoods that match your lifestyle and budget.
• Attend open houses and schedule home viewings.

If you’re ready to become a homeowner, now is a great time to meet with a mortgage loan officer to clarify your options. Reach out to Mountain America—we can guide you toward your dream of homeownership.