Mortgage Rates Hold Steady — Is Spring 2025 a Buying Opportunity?

With the 30-year fixed-rate mortgage holding at 6.76% for three weeks straight, and mortgage applications jumping 11% since the end of April, signs point to renewed homebuyer interest. But with affordability still a major concern, how should you approach this market?

Couple reviewing mortgage rates outside a home for sale

What’s Behind the Mortgage Surge?

The Federal Reserve’s decision to hold rates steady — and a drop in volatility — helped calm the mortgage bond market. Buyers who had been waiting on the sidelines are slowly re-entering the market, especially as inflation fears recede slightly.

According to the Mortgage Bankers Association, purchase applications are now 13% higher than the same week last year. The boost in buyer confidence is also driven by positive trade news, like the new U.S.-U.K. agreement, which analysts believe could spill over into housing if more deals follow.

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Should You Buy or Wait?

Some buyers are still holding out, hoping for rate drops. But spring is traditionally a high-competition season, and the longer you wait, the more likely you’ll face bidding wars — even in a cautious market. For those who can afford it, buying now could avoid price hikes later this year.

However, affordability remains tight: Redfin reports the median monthly payment reached a new high of $2,868. As a result, buyers are more selective, pushing harder for repairs and negotiations.

Real estate agent handing over keys with approved mortgage folder

Markets to Watch

Metro areas like Boise, Salt Lake City, and Las Vegas — which saw prior price dips — are rebounding. Meanwhile, areas like Austin and Raleigh may recover soon due to strong job growth, despite current declines.

The takeaway? This might be your last chance to buy before prices trend up again — but preparation is key.

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