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What’s next for the U.S. housing market? Will prices continue to climb, or are we heading for a cooldown?
If you’re wondering whether 2025 will be the year to buy, sell, or stay put, you’re not alone.
In this article, we’ll explore expert predictions for the housing market, breaking down trends in home prices, interest rates, and buyer demand—so you can make informed decisions with confidence.
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.
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General predictions about the U.S. housing market in 2025
1) The President of RE/MAX reassures that the housing market won’t crash in 2025
Let’s kick off this article with some reassuring news.
Amy Lessinger, the president of RE/MAX, explains that the 2008 housing crash was caused by unique problems like risky lending practices, subprime mortgages, and an oversupply of homes.
We can believe her. RE/MAX is a globally recognized real estate company, and Lessinger’s role as president gives her credibility in predicting housing market stability.
Thankfully, today’s market is very different. Most homeowners are in solid financial shape, with many having significant equity in their homes. Plus, a record number of people now own their homes outright, without any mortgage.
All of this makes a repeat of the 2008 crisis highly unlikely.
2) Goldman Sachs also expects the U.S. housing market to stay stable in 2025
Goldman Sachs predicts that despite high home prices, the U.S. housing market will stay stable.
This is because many households have strong finances and there are few permanent job losses.
Even though homes are less affordable than ever, solid household financial health and job stability are helping to prevent a downturn.
This stability is expected to keep demand steady, allowing the market to manage high prices and affordability challenges without major disruptions.
Source: Goldman Sachs
3) Bankrate's Chief Financial Analyst believes that 2025 will bring a calmer housing market
Greg McBride, CFA, Chief Financial Analyst for Bankrate, predicts that home-price growth in 2025 will be pretty modest.
In fact, for him, many markets might not see much change at all.
This slowdown comes as mortgage rates stabilize and more inventory, mostly from new construction, becomes available.
That said, it’s not the same story everywhere. In areas with more homes on the market, prices might even dip a bit. But in places where demand is high and supply is tight, prices are likely to hold steady.
Overall, it looks like 2025 will bring a calmer housing market, without the big price jumps we’ve seen in recent years.
Sources: BankRate, Greg McBride
4) Chief Economist for the National Association of Realtors (NAR) believes a market crash is unlikely in 2025
Lawrence Yun, Chief Economist for the National Association of Realtors (NAR), also thinks that a market crash is unlikely, due to historically low distressed property sales and mortgage defaults.
Distressed sales, such as foreclosures, remain steady at about 2% of total sales, signaling homeowners are largely keeping up with payments.
Mortgage default rates are also at record lows, thanks to stricter lending standards since 2008, ensuring buyers are better qualified and loans more sustainable.
Additionally, homeowners have gained an average of $147,000 in equity over five years, providing a strong financial buffer against economic downturns.
These factors—low distressed sales, minimal defaults, and robust equity—underscore Yun’s confidence in the market’s stability and reduced crash risk.
Sources: NAR, WorldPropertyJournal, BankRate, New York Post
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Price predictions about the U.S. housing market in 2025
5) Moody's Analytics predict a 0.3% increase in U.S. home prices for 2025
Moody's Analytics projects a slight 0.3% increase in U.S. home prices for 2025. This reflects ongoing concerns about housing affordability.
After significant price surges during the pandemic, higher interest rates and inflation have made homeownership more challenging, keeping price growth minimal for now.
Sources: Moody's, Norad Real Estate
6) Zillow forecast a 0.9% rise in home values for 2025
Zillow predicts 0.9% growth in U.S. home values by 2025, driven by falling mortgage rates and increased housing supply. This added inventory is helping to ease price pressures.
While values are expected to rise 2% in 2024 and 0.9% in 2025, new listings outpacing sales are likely to temper appreciation further.
Source: Zillow Research
7) The National Association of Realtors forecast a 2% rise in home prices for 2025
The National Association of Realtors (NAR) expects existing-home prices to increase 3.8% in 2024 and 2% in 2025, citing limited inventory as the primary driver of growth.
NAR predicts that increased home construction and listings will help ease price pressures, slowing growth. Meanwhile, stable mortgage rates and wage growth should sustain buyer demand and confidence.
Source: The National Association of Realtors
8) Freddie Mac predict a 2.1% increase in home prices for 2025
Freddie Mac projects home prices to rise by 2.1% in 2025, supported by lower mortgage rates and strong buyer demand. Tight inventory remains a challenge as many homeowners are holding onto low mortgage rates, restricting supply.
These factors are expected to keep prices growing slowly but steadily.
Source: Freddie Mac
9) The Mortgage Bankers Association predict a 2.7% rise in home prices for 2025
The Mortgage Bankers Association (MBA) expects home prices to grow 3.9% in 2024 and 2.7% in 2025, citing GDP growth, employment rates, and consumer spending as key factors.
They highlight that mortgage trends and inventory will play critical roles in shaping the housing market.
Sources: The Mortgage Bankers Association, Business Insider
10) Fannie Mae project a 3% growth in home prices for 2025
Fannie Mae forecasts home prices will grow 3% in 2025, following 6.1% growth in 2024. Insights from their Home Price Expectations Survey cite increased inventory and shifting buyer demand as potential factors moderating growth.
Economic conditions, including mortgage rates and affordability, remain pivotal for housing market dynamics.
Sources: Fannie Mae, Fannie Mae
11) Morgan Stanley predict a 3% rise in home prices for 2025
Morgan Stanley expects home prices to rise 3% in 2025, driven by lower mortgage rates and tight housing inventory. They anticipate slowing inflation and improved affordability will sustain demand.
Their analysis highlights the housing market’s resilience and potential for steady returns.
Sources: Morgan Stanley, Norada Real Estate
12) HousingWire forecast a 3.5% increase in home prices for 2025
HousingWire anticipates 3.5% home price growth in 2025, signaling a stabilizing housing market. Key trends include easing mortgage rates between 5.75% and 7.25% and a 13% increase in housing inventory.
These factors should create balanced conditions for buyers and sellers, leading to moderate appreciation.
Source: HousingWire
13) Goldman Sachs project a 4.4% rise in home prices for 2025
Goldman Sachs predicts 4.4% growth in U.S. home prices for 2025, supported by anticipated Federal Reserve interest rate cuts and a strong economy.
While affordability remains a challenge, improved mortgage rates could help more buyers enter the market, driving growth.
Sources: Goldman Sachs, Business Insider
14) Capital Economics forecast a 5% rise in house prices for 2025
Capital Economics expects house prices to grow 5% in 2025, exceeding consensus estimates. Lower mortgage rates, potentially dropping below 4.0% by late 2025, are projected to boost affordability and buyer demand.
Improved market conditions are likely to support further price increases in subsequent years.
Source: Capital Economics
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Predictions about home sales in the U.S. in 2025
15) Zillow predicts 4.4 million home sales in 2025, fueled by lower rates and more inventory
Zillow forecasts 4.4 million existing home sales in 2025, up from 4.1 million in 2023 and 2024.
Lower mortgage rates are expected to make financing easier, encouraging more buyers. Increased inventory as rates drop may boost sales activity.
Source: Zillow
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16) Fannie Mae predicts 5.24 million home sales in 2025
Fannie Mae forecasts 5.24 million home sales in 2025, up from 4.77 million in 2024.
Lower mortgage rates (around 5.9%) and improved housing supply are expected to drive growth. A stable economy with steady job growth could further boost consumer confidence.
17) Statista projects 5.6 million home sales in 2025
Statista expects 5.6 million sales in 2025, recovering from 4 million in 2023. Rising home prices and higher mortgage rates had slowed sales, but stabilization and economic growth may restore momentum.
Source: Statista
18) HousingWire projects a 5% increase in home sales for 2025
HousingWire forecasts a 5% sales increase in 2025, reaching 4.2 million transactions. Mortgage rates (5.75%-7.25%) and a 13% growth in inventory (peaking at 800,000 homes) are key drivers, supported by economic stability.
Source: HousingWire
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19) CoreLogic predicts a 9% rise in 2025 home sales
CoreLogic’s Selma Hepp expects a 9% sales increase, driven by lower mortgage rates and more housing supply. These changes may ease competition, reduce bidding wars, and slow price growth.
20) NAR forecasts a 9% rise in 2025 and 13% in 2026
NAR’s Lawrence Yun predicts 9% growth in 2025 and 13% in 2026, citing 6% mortgage rates, improved inventory, and job growth. He emphasizes the wealth-building benefits of homeownership.
Sources: NAR, Real Estate News, Colorado Biz, Forbes
Predictions about the mortgage rates in the U.S. in 2025
21) Goldman Sachs predicts mortgage rates will drop 0.4% by 2025
By 2025, mortgage rates are expected to drop another 0.4%, continuing their steady decline from the 7.8% peak in late 2023. Rates are now below 6.5% in 2024, and Goldman Sachs predicts a slow, ongoing decrease, making home loans cheaper.
This gradual drop should boost affordability for homebuyers, though progress will take time. Lower rates, combined with income growth, are expected to offset rising home prices and improve accessibility by the decade's end.
Currently, mortgage applications haven’t surged, likely because rates fell after the spring buying season.
Still, Goldman Sachs expects further rate drops to help stabilize the housing market over time.
Sources: Goldman Sachs, Business Insider
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22) Wells Fargo predicts mortgage rates will drop to 5.55% by 2025
Wells Fargo expects 30-year fixed mortgage rates to fall to 5.55% by 2025, making home buying more affordable and increasing market activity.
Lower rates might solve the "golden handcuffs" problem, where homeowners with 3% rates resist selling, keeping inventory tight. A drop to 5.25–5.75% could prompt more sales and boost housing supply.
Combining lower borrowing costs with higher inventory may significantly benefit the housing market.
Sources: Wells Fargo, Youtube, Fool, U.S. News
23) Fannie Mae forecasts 30-year fixed mortgage rates at 5.7% in 2025
Fannie Mae projects 30-year fixed mortgage rates will drop to 5.7% in 2025, continuing their decline from 6.6% in 2024.
Lower rates suggest better borrowing conditions, likely boosting housing demand.
Source: Fannie Mae
24) MBA predicts 30-year mortgage rates will drop to 5.9% by 2025
The Mortgage Bankers Association (MBA) expects 30-year fixed mortgage rates to fall to 5.9% by late 2025, remaining around 6% long-term for market stability.
They also predict a narrower gap between mortgage rates and Treasury yields, reducing borrowing costs for buyers.
These changes suggest affordable, predictable options for future homeowners.
Sources: MBA, Fool, New York Post
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25) NAR Economist forecasts stable mortgage rates near 6% by 2025
Lawrence Yun, NAR Chief Economist, predicts mortgage rates stabilizing between 5.5% and 6.5%, with potential cuts in 2025 offering borrowers relief.
He cautions that rate reductions may be limited, keeping rates around 6% longer term.
Sources: NAR, Boston Agent Magazine
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26) Bright MLS Economist predicts mortgage rates above 6% in 2025
Lisa Sturtevant, Bright MLS Chief Economist, expects rates to drop slightly into 2025, remaining above 6% unless inflation rises sharply.
Sources: Bright MLS, Forbes, AP News
27) Morgan Stanley forecasts 30-year mortgage rates at 6.25% by mid-2025
Morgan Stanley predicts 30-year fixed mortgage rates will fall to 6.25% by summer 2025, down from 7%, easing borrowing costs.
Cooling inflation and lower Treasury yields are key factors behind this expected decline, potentially reducing 10-year Treasury rates to 3.75%.
Sources: Morgan Stanley, Norada Real Estate
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