DFW 2025 Housing Market Forecast: Interest rates to stay stable, prices anticipated to increase

National housing economists are providing insights into the housing market for 2025. The Deputy Chief Economist for the National Association of Realtors, Jessica Lautz, presented expectations for the housing market to the Collin County Association of Realtors. Lautz predicts that mortgage rates will stabilize around the high 6% range, with a possible slight decrease to 6.5%. However, the rates are unlikely to drop to the desired 5% mark, disappointing some potential buyers.

Lautz advises against waiting for significant drops in rates and recommends acting now. She indicates that rates are likely to remain steady in the 6% range, with expectations for rising home prices. Despite this, there is hope for buyers, as housing inventory is projected to increase, offering more options than in previous years. Lautz also notes that the current rates are an improvement from the 8% seen in 2023.

Key takeaways for the 2025 housing market include stable mortgage rates in the high 6% range, anticipated home price increases, more available inventory, and heightened buyer demand. Potential homebuyers are encouraged to assess their financial situation, consult with a mortgage lender and realtor, and consider entering the market now rather than waiting for uncertain rate decreases.

The housing market outlook for 2025 suggests that buyers should not hold out for significant drops in mortgage rates. Instead, experts foresee stable rates in the high 6% range, with the potential for a slight decline to 6.5%. Despite hopes for a decrease to 5%, this is unlikely to happen as expected. Consequently, potential buyers are advised not to delay their home purchasing decisions based on the assumption of forthcoming rate drops.

Jessica Lautz, Deputy Chief Economist for the National Association of Realtors, shared insights into the 2025 housing market with the Collin County Association of Realtors. According to Lautz, mortgage rates are forecasted to stabilize around the high 6% range, and the likelihood of a drop to 6.5% exists. However, reaching the desired 5% mark is improbable.

While rates are expected to remain steady, there are positive aspects for buyers in the market. Lautz predicts an increase in housing inventory and more individuals entering the market, indicating improved options for buyers compared to previous years. Moreover, the current rates are more favorable than the 8% recorded in 2023.

The 2025 housing market is expected to feature stable mortgage rates in the high 6% range, increasing home prices, augmented available inventory, and heightened buyer demand. Therefore, it is recommended that potential homebuyers carefully evaluate their finances, engage with a mortgage lender and realtor, and contemplate entering the market promptly instead of waiting for uncertain rate reductions.