Things to Consider When Buying a Home Fall 2025

Let's Dive In

Is It Better To Rent or Buy a Home?

Homeownership is a crucial step toward building long-term wealth despite the allure of renting.

Renting may seem safer and less expensive in the short term, but it can cost more over time.
Home prices typically rise, making it more expensive to buy if you wait.
Homeownership builds equity, contributing to net worth; homeowners' net worth is 40 times greater than renters'.
Rent payments do not build wealth and only pay the landlord's mortgage.

What You Really Need To Know About Down Payments

Many first-time buyers are unaware of the actual down payment requirements.

The common misconception is that a 20% down payment is necessary, but the median for first-time buyers is only 9%.
Some loan options require as little as 3.5% or even 0% down.
80% of first-time buyers qualify for down payment assistance, but only 13% utilize it.
The average assistance program offers about $17,000.

The Biggest Bright Spot for Buyers: Inventory

Improved inventory levels are making it easier for buyers to find homes within their budget.

Nationally, the number of homes for sale has increased by at least 15% year-over-year across all regions.
The West region has seen inventory growth of nearly 33%.
More homes for sale are leading to a more balanced market, shifting some power back to buyers.
Local market conditions will vary, so expert guidance is essential.

Why a Newly Built Home Might Be a Smart Move Right Now

Newly built homes present unique opportunities in the current market.

Approximately 1 in 5 homes for sale is new construction, providing more options for buyers.
Builders are cutting prices, with 37% reducing prices in August to attract buyers.
Buyers of newly built homes often receive better mortgage rates, averaging around 0.5% lower than existing homes.
This can lead to significant savings on monthly payments.

Housing Market Forecasts for the Rest of 2025

Expert forecasts suggest a moderate housing market with stable prices and mortgage rates.

Home price growth is slowing but not expected to crash; forecasts show a national increase of around 3.4% in 2025.
Mortgage rates are projected to remain in the mid-6% range, with no substantial drops expected.
Local market conditions will vary, so it's important to stay informed about specific trends in your area.

How Changing Mortgage Rates Affect Your Future Monthly Payment

Understanding the impact of mortgage rates on monthly payments is crucial for buyers.

Even small changes in rates can significantly affect monthly payments.
For example, a $250,000 loan at 7.5% results in a payment of $1,748, while at 6.0%, it drops to $1,499, saving $249 monthly.
Buyers should focus on their personal financial situation rather than trying to time the market.

The Top 2 Buyer Mistakes Today

Avoiding common mistakes can save buyers from costly errors in the homebuying process.

The first mistake is delaying pre-approval, which can lead to missed opportunities when bidding on homes.
The second mistake is buying more house than one can afford, which can strain finances due to rising housing expenses.
It's essential to work with professionals to navigate these challenges effectively.

Things To Avoid After Applying for a Mortgage

Maintaining financial consistency after applying for a mortgage is vital.

Avoid changing bank accounts, applying for new credit, or making large purchases.
Do not deposit cash without consulting your lender first.
Always communicate with your lender before making any financial decisions.

5 Reasons You Need an Agent When Buying a Home

Having a real estate agent is invaluable during the homebuying process.

Agents provide industry expertise and guide buyers through every step of the process.
They offer local market knowledge, helping buyers understand current trends and pricing.
Agents review contracts and fine print, ensuring buyers know what they are signing.
They bring negotiation skills to the table, advocating for the buyer's best interests throughout the transaction.