Lisa Mailhot | November 28, 2024
Buyers
The housing market is at a crossroads, with high mortgage rates and home prices creating challenges for buyers and sellers alike. As we look ahead to 2025, economic policies, including potential tariff increases and tax cuts under Donald Trump’s agenda, are poised to play a pivotal role in shaping affordability and homeownership trends.
Mortgage rates currently range between 6% and 7%, influenced by factors like the U.S. economy's health, inflation, and Treasury yields. Policies that raise inflation, such as proposed tariffs on imports, could drive these rates even higher. Higher borrowing costs make homes less accessible, especially for first-time buyers, whose share in the market has dipped to historic lows.
For potential buyers, these high rates mean significant additional costs. For instance, a 1% increase in mortgage rates can add hundreds of dollars to monthly payments, impacting affordability and delaying wealth-building opportunities that homeownership provides. Despite these challenges, home prices may stabilize, offering some relief to buyers in 2025.
Owning a home remains one of the most effective ways to build wealth. While the economic outlook may feel uncertain, taking a step toward homeownership, even under less-than-ideal conditions, often yields long-term financial benefits.
Whether you’re navigating high mortgage rates or exploring stable home prices, finding your perfect home in Orange County is within reach.
Let’s connect to discuss your housing goals and make your dream home a reality.
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