Is It a Good Time to Buy a House?

The housing market loves to keep us guessing. But when you’re ready, you’re ready — and that matters way more than waiting for a perfect moment.

If you’re house hunting, here’s your game plan.

How’s the housing market right now?

The biggest news: More houses are hitting the market. Buyers can expect more choice and less competition. Skip ahead to read about:

Weekly average mortgage rates

Like a summer heat wave, mortgage rates aren’t giving any relief — and it’s making buyers sweat. When mortgage rates are high, your home buying budget doesn’t stretch as far.

The interest rate on a 30-year fixed-rate mortgage averaged 6.84% annual percentage rate (APR) for the week ending June 26, according to rates provided to NerdWallet by Zillow. A basis point is one one-hundredth of 1%.

Average weekly mortgage rates

Averages are for the week ending June 26, 2025, according to rates provided to NerdWallet by Zillow.

🤓Nerdy Tip

Compare offers from at least three lenders to get the best deal. Comparison shopping can save you thousands of dollars over the life of the loan.

Should I wait for a recession to buy a house?

Tariffs + recession whispers = instant overthinking. Here’s how to stay grounded:

🤔 Consider pausing: If your finances feel shaky — for example, you’re worried about job security or paying bills — it’s wise to hold off.

😌 Stay the course: If your income is steady and your budget is solid, don’t let scary “what if” headlines throw you off track.

Did you know…

The Federal Reserve, the nation’s central bank, indirectly influences interest rates on all loans (including mortgages). With persistent inflation, the committee has signaled it won’t cut the federal funds rate until this fall, at the earliest.

Is it a buyer’s or seller’s market right now?

Right now: Seller’s market (moderate)

After years of sellers having the upper hand, the vibe is finally 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, said in a statement.

What does a buyer-friendly shift look like? Hale flags these signs:

✅ More houses to choose from.

✅ Wiggle room on price (including sellers accepting offers below asking).

✅ Willingness to negotiate on contract terms.

Let’s dig into the details using May 2025 data from the National Association of Realtors (NAR).

Inventory: A positive shift

Good news: Inventory is up more than 20% compared to a year ago, reports the NAR. Currently, inventory sits at a 4.6-month supply of homes for sale.

Home prices: High and still climbing

Year-over-year home prices have gone up for 23 months straight. The national median price for existing homes sold in May was $422,800, according to the NAR. Median prices vary by region:

🤓Nerdy Tip

Buying a house is expensive up front, but it can help you build long-term wealth. Try our rent vs. buy calculator to compare costs over time and see your break-even point.

Home sales: “Meh” momentum

The steep cost of buying might be to blame for fairly flat home sales, which slid 0.7% compared to last year. In a news release, Lawrence Yun, NAR chief economist, blamed sluggish sales on high mortgage rates.

“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.

Competition: Easing up

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).

Should I buy a house now or wait?

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.