Homebuyers

Real Estate by the Numbers: Why 2025 Buyers Have the Upper Hand

For much of the past four years, would-be homebuyers faced a tough equation: too few homes for sale at high listing prices equaled a market where sellers called the shots.  

But that math is changing in 2025. 

“Fall is traditionally a good time to buy a home as the market cools off after the busy spring and summer season,” said Danielle Hale, chief economist at Realtor.com. “With mortgage rates already in retreat, this fall could offer an added bonus for buyers.”
 
Indeed, it seems that this fall, the numbers are finally tilting in favor of buyers. Here’s how the latest data points stack up and how you can use them to your advantage if you’re home-hunting before the end of year. 

What are mortgage rates today?

After getting close to 7% for much of the summer, the average 30-year fixed mortgage interest rate recently slid to the mid-6.5% range, according to Freddie Mac.  

That may not sound like a screaming deal compared with the 3% rates of yesteryear, but it marks a meaningful shift from June when rates hovered around 6.8%, according to Freddie Mac data. 

“We’ve already begun to see mortgage rates drop, a welcome sign for maxed-out buyers who struggle with un-affordability as one of their key sources of unhappiness in today’s housing market,” said Hale.

Even small dips in rates matter. A quarter-point dip in rates can translate into thousands saved over the life of a loan. On a $400,000 mortgage, the difference between 6.85% and 6.55% is about $80 per month. 

That kind of savings can push you into a higher home price bracket by increasing your buying power. Or it could make buying a home more affordable without stretching your budget. 

And with the U.S. Federal Reserve expected to cut rates at least once, if not more, before year’s end, buyers may see a slow grind downward in mortgage rates rather than a freefall.

That’s good news. Gradual declines prevent another frenzied market where homes are snapped up in hours. 

How many homes are for sale?

For the first time in years, homebuyers have more options. National housing inventory now tops 1 million homes for sale, up nearly 25% from last fall, according to Realtor.com’s July data. 

That number equals leverage in areas of the country where buyers have more homes to choose from. 
 
“There’s so much more supply,” said Sebastian Frey, a broker associate at Compass in Silicon Valley, Calif. 

For buyers, that means the days of waiving inspections and paying far above ask are fading. With more homes to choose from, you may be able to take your time, negotiate repairs, and ask for seller concessions. 

“Take advantage of the seasonal psychology,” said Jacob Naig, owner and real estate investor in Des Moines, Iowa. “Sellers realize that buyers wane in mid-November, so they are more likely to cover closing costs, offer rate buy downs, and also provide appliances.”

How many homes have price reductions?

Sellers are now competing against one another to unload their properties in many parts of the country.

About 27.4% of homes on the market have seen at least one price cut this year, according to Zillow data. That’s more than a quarter of all homes for sale. 

Sellers who slash their price once are often more open to sweetening the deal a second time. That could mean negotiating for furniture, landscaping credits, or the big one: a further drop in asking price. 

Pro tip: If you spot a listing that’s lingered for 30 days or more, it may be worth discussing with your real estate agent if you should come in with a confident offer below the list price. 

The waiting period to refinance your mortgage

Many buyers still hesitate, worried that if they buy now, they’ll be “locked” into today’s higher rates. But lenders typically allow refinancing after just six months of on-time payments. 

Translation: If you buy this fall and rates fall further in 2026, you may be able to refinance into a lower payment as you settle into your new place. 

Waiting for the “perfect” rate could mean missing the perfect home. It may be better to buy when inventory is plentiful and sellers are flexible, then play the refinance game later. 

The strong credit score advantage when buying a home  

A high credit score often helps get you approved for a mortgage and may save you real money. Borrowers with scores above 700 may be able to snag lower rates than borrowers with scores in the 600s.  

If your credit score is not where you would like it to be yet, don’t panic. Even modest improvements, such as boosting your score by 50 points, can open new loan programs or better mortgage terms.  

For Federal Housing Administration (FHA) borrowers, the minimum score is just 580 with 3.5% down. This may make homeownership more achievable than many assume. 

In other words, the credit math is one of the few levers you can pull before you even tour a home. 

How much are renters spending each month on housing? 

In the past 10 years, U.S. average rent climbed from about $1,000 a month in 2015 to nearly $1,650 in 2025, according to the U.S. Bureau of Labor Statistics Consumer Price Index. 

That extra $650 a month adds up fast. It totals more than $7,500 a year that renters are shelling out without building any long-term wealth. 

Meanwhile, a $400,000 home appreciating at just 3% a year could be worth about $463,000 in five years.  

On top of that, every mortgage payment chips away at the balance, adding equity with each month. Homeowners can watch their home values rise and sidestep the relentless climb of rent.