Mortgage rates continue to trend down. That’s good news for buyers who feel priced out of today’s market—it could make buying more affordable. But remember: Buyers should always Date the rate, marry the house. Rates will always move up and down. What really matters is helping them find a home they can actually afford.

Mortgage rates could dip by about 0.19 percentage points by the end of 2025. It’s smart to keep an eye on what experts are forecasting—but remember, rates can be as unpredictable as the weather.

This forecast comes from Fannie Mae, one of the largest players in the U.S. mortgage market. Their experts analyze housing, economic and mortgage trends, and they survey both lenders and consumers to predict where rates might be headed.
 
The key word here is might—because even with all that research, these are still educated guesses. Mortgage rate forecasts can be helpful, but they shouldn’t be the main reason your clients decide to buy or wait. Their personal financial readiness should be the deciding factor.

Home  prices dipped last month, showing growth is slowing—so buyers don’t have to worry about being priced out overnight. Even though prices are still up 36% since 2019, with a solid plan, your customers can still buy an affordable home they love.¹ Just be sure to advise them to keep their monthly mortgage payment at 25% or less of their take-home pay (anything more and they’ll run the risk of being house poor).

In August, buyers had plenty to choose from, with total homes for sale topping 1 million for the fourth month in a row. That marks the 22nd straight month of year-over-year inventory growth—though the pace did slow a bit from July.

At the same time, some sellers are pulling their homes off the market rather than lowering the price, discouraged by sluggish buyer activity.¹ The best way to help sellers stand out and attract buyers quickly is to start with a realistic, competitive asking price.

In August, homes stayed on the market about a week longer than they did a year ago—marking the 17th straight month of slower year-over-year sales. With affordability still weighing on buyers, many are choosing to wait on the sidelines, which has slowed the market in certain areas.

The good news? This slowdown could work in buyers’ favor. They have more time to house hunt, more room to negotiate, and less pressure to make a rushed decision.