The housing market likes to maintain us guessing. However whenever you’re prepared, you’re prepared — and that issues far more than ready for an ideal second.

When you’re home searching, right here’s your recreation plan.

The largest information: Extra homes are hitting the market. Consumers can anticipate extra selection and fewer competitors. Skip forward to examine:

Like a summer time warmth wave, mortgage charges aren’t giving any aid — and it’s making patrons sweat. When mortgage charges are excessive, your private home shopping for price range doesn’t stretch as far.

The rate of interest on a 30-year fixed-rate mortgage averaged 6.84% annual proportion fee (APR) for the week ending June 26, in line with charges supplied to NerdWallet by Zillow. A foundation level is one one-hundredth of 1%.

Averages are for the week ending June 26, 2025, in line with charges supplied to NerdWallet by Zillow.

Tariffs + recession whispers = immediate overthinking. Right here’s methods to keep grounded:

• 🤔 Take into account pausing: In case your funds really feel shaky — for instance, you’re apprehensive about job safety or paying payments — it’s smart to carry off.

•  😌 Keep the course: In case your earnings is regular and your price range is stable, don’t let scary “what if” headlines throw you off monitor.  

After years of sellers having the higher hand, the vibe is lastly shifting.

“Outside of a temporary blip early in the pandemic, we’re likely to see the most buyer-friendly summer in nine years,” Danielle Hale, chief economist at Realtor.com, mentioned in a press release.

What does a buyer-friendly shift seem like? Hale flags these indicators:

• ✅ Extra homes to select from.

• ✅ Wiggle room on worth (together with sellers accepting presents beneath asking).

• ✅ Willingness to barter on contract phrases. 

Let’s dig into the small print utilizing Might 2025 information from the Nationwide Affiliation of Realtors (NAR).

Excellent news: Stock is up greater than 20% in comparison with a 12 months in the past, reviews the NAR. At present, stock sits at a 4.6-month provide of properties on the market.

Yr-over-year house costs have gone up for 23 months straight. The nationwide median worth for current properties bought in Might was $422,800, in line with the NAR. Median costs range by area:

The steep price of shopping for is perhaps accountable for pretty flat house gross sales, which slid 0.7% in comparison with final 12 months. In a information launch, Lawrence Yun, NAR chief economist, blamed sluggish gross sales on excessive mortgage charges.

“If mortgage rates decrease in the second half of this year, expect home sales across the country to increase due to strong income growth, healthy inventory, and a record-high number of jobs,” he said.

The May 2025 Realtors Confidence Index, a survey of the NAR’s members, shows these signs of a less cutthroat market:

• Bidding wars aren’t the norm. A home listed for sale received an average 2.5 offers in May. For context: In the era of hot bidding wars in 2021, the average was around five offers per home.

• Fewer homes are selling above list price. In May, 28% of homes sold above listing price, down from 30% last year. 

• Homes are staying on the market longer. Houses stayed on the market for a median 27 days in May, longer than a year ago (24 days).

Consider these green flags:

• ✅ Stability: You have steady income and employment, and you’re ready to stay in one place for several years.

• ✅ Lifestyle: For first-time buyers, you’re prepared to be responsible for maintenance and repairs. For repeat buyers, your current house no longer meets your needs.

• ✅ Low debt: Your debt-to-income ratio (DTI) shows how much of your monthly income goes toward paying debt (like student loans, car payments or credit cards). The lower your DTI, the better your mortgage rates and terms. A DTI of 36% or below is most attractive to lenders.

• ✅ Good credit score: Borrowers with credit scores of 740 and above get the best mortgage rates and terms. With a score in the 600s or below, your options are limited.