Homebuyers can expect to obtain a slightly lower mortgage rates in 2025, compared to 2024. CNBC reported that the average 30-year fixed-rate loan on December 30, 2024, was 7.11% and that many financial institutions are predicting somewhere between 6.2% and 6.6% for 30-year fixed-rate loan in 2025.
In addition, Zillow is predicting that home values will increase by 2.2% in 2025.
We should also point out that 2023 was “the least affordable home buying year in at least 11 years,” according to CNBC. So, things are definitely moving in the right direction and are looking pretty good for buying or selling a home in 2025.
Does this mean 2025 is the year to buy? As my team at Jackie Mack & More and I would like to point out, the market can be difficult to predict, as we all certainly know from experience that anything can happen.
But if you’ve been holding off for a better rate, now might be a great time to jump in. Sellers who’ve been waiting are finally making a move, opening up more properties for buyers who are also getting a slightly better rate. And if you intend to live in the home for five years or longer – and your overall mortgage and taxes fit within your budget – it might make financial sense to act now.
Waiting longer after an opportunity like this one can be risky business, because you might not get your dream home at a price you can afford as others will be jumping into the fray as well. And, if inflation returns in 2025 or beyond, a possibility, mortgage rates will surely go up as well.
What does this mean for Evanston? As a city filled with historic and stately single-family homes, vintage condos and co-ops, modern high rises, and much more, the current market could look very beautiful indeed, enabling you to find the exact type of home you want. But with a limited amount of housing stock available for purchase, buyers need to work fast.
But how will you get the home you want at the best possible rate? The short answer: Work with an agent, particularly one who is part of a team! First, you might find it hard to find the home for you and best mortgage rates on your own. Second, a realtor team – especially one where all of the members are briefed on the wants, needs, and goals of all of their clients – will enable you to act faster. After all, with a team in place, there will always be a realtor available to take you on a home tour, prepare and place a bid, and complete the other processes on a shortened timeline.
If you need any guidance in your search, my team at Jackie Mack & More can help. Feel free to email us at info@jackiemack.com or give us a call at 847-274-6676.
In fact, my team and I are here to answer all your questions, so you better understand the home buying process as well as the requirements for obtaining a home loan. As your “Evanston Experts,” with deep knowledge of the surrounding communities as well, we can also help you find the type of home you want. Whatever your housing needs and goals, our mission is to ensure that you don’t experience any surprises along the way.
And in the meantime, for a list of excellent local mortgage lenders, please go to Jackie’s List.
Let’s make 2025 the year you find your dream home!