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.
The NAR settlement may have closed one chapter, but lawsuits like Batton II and Gibson show the legal battles over real estate commissions are far from over. Discover … Read more
Learn how to budget as a couple with these 7 practical tips! From setting clear financial goals to automating savings, discover strategies to reduce stress, align prio… Read more
With mortgage rates hovering near 20-year highs, economic policies, inflation concerns, and federal decisions could shape affordability in 2025. Discover how these tre… Read more
Looking to keep Thanksgiving conversations uplifting? Discover six positive icebreakers that foster joy and connection, plus three topics to avoid for a stress-free ho… Read more
Discover how Hawaii’s natural beauty and cultural wisdom provide insights for navigating the dynamic real estate market in Orange County. Explore adaptability, sustain… Read more
Americans are prioritizing climate resilience in homebuying. Low-risk properties are now appreciating faster than high-risk ones, reflecting a pivotal shift in market … Read more
With potential changes to student loan forgiveness and repayment programs on the horizon, borrowers must act now to protect their financial future. These seven steps w… Read more
Discover the stunning transformation of a Corona del Mar mansion, blending old-world charm with contemporary elegance. Listed at $49.5M, this oceanfront property offer… Read more
Zillow's new 'BuyAbility' tool makes homebuying easier by helping buyers focus on homes they can afford. Discover how personalized insights and real-time updates empow… Read more
Let's find a time that suits you best to chat about your goals, show you how we work, and figure out how we can help you the most