2025 Winter Market Update

Get the latest real estate news with this quick and easy-to-understand market update!

Real Estate Market:

• The rate of a 30-year fixed home loan as of January 9, 2025, is ranging between 6.30% to 7.03%. Individual mortgage rates are based on over 30 different factors including a borrower’s credit score, down payment amount, loan terms, and loan type, to list a few.
  
  
• As of November 2024, the median sales price of existing homes in the U.S. decreased to $406,100 from $426,900 in June.
  
  
• Active inventory is up 22% compared to last year, marking 14 straight months of year-over-year growth. Refinances accounted for 38% of applications in November - a decrease from September after rates rose. However, purchase applications jumped 23.5% from October, showing buyers are watching for opportunities.
  
  
• Home prices rose just 4.4% year-over-year as of September 2024, continuing to moderate from the rapid increases seen in 2022.
  
  
• In states like Texas and Florida, where there are larger inventories of new construction, housing supply saw significant improvements, suggesting a more balanced market could emerge in 2025.
  
  
• Homeowners with mortgages saw a collective equity increase of $425 billion in Q3 2024, with the average borrower sitting on $311,000 in equity. This equity can be tapped into for renovations, investing, building an emergency fund, or even paying off debt, helping you build wealth and improve your financial flexibility.

Financial Market:

• U.S. inflation rose slightly in October. Core PCE (excluding food and energy) increased 0.3% for the month and 2.8% year-over-year. Goods prices fell 0.1%, but services prices rose 0.4%. Despite the uptick, inflation is expected to gradually cool in 2025.
  
  
• The labor market rebounded, adding 227,000 jobs in November and keeping the unemployment rate low at 4.2%.
  
  
• The U.S. economy grew 3.1% in Q3 2024, up from 3.0% in Q2, boosted by exports, consumer spending, and federal spending, but slowed by lower inventory and housing investments.

What This Means for You

As we move into 2025, there’s potential for more flexibility in your home search with increased inventory and stabilizing rates. First-time buyers may find the market a bit more affordable, especially with new builds and rising incomes, while repeat buyers can tap into the equity they’ve built in their current homes.

As rates fluctuate, it’s helpful to stay informed and prepared. Tools like Churchill Mortgage's Rate Watch can help you track rate changes, and options like Rate Secured allow you to lock in today’s rate for up to 90 days. Now may also be a great time for homeowners to refinance—whether it’s to lower monthly payments, reduce your interest rate, shorten your loan term, or tap into equity for renovations or other expenses. 

Take advantage of today’s opportunities to make your mortgage work better for you. Reach out to explore your options today!