BiggerPockets Real Estate Podcast August 2025 Housing Market Update: Rates Fall, Price Corrections Spread
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Aug 15, 2025 Mortgage rates hit a low in 2025, impacting buyer dynamics across nearly half the country. Sellers are hesitant to list their homes, creating a tight inventory situation. The discussion dives into whether this is a typical correction or early signs of a crash. Listeners are advised on navigating the current market, which is shaped by recession fears and changing mortgage rates. With a shift towards a buyer's market, now might be an opportune moment for potential investors, despite the looming economic uncertainties.
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Rates Drop To Lowest Of 2025
- Mortgage rates hit their lowest point in 2025, falling to about 6.5–6.6% from ~7.1–7.2% in January.
- That half-point drop meaningfully improves monthly affordability for buyers but still keeps rates high by historical norms.
Bond Market Drives Mortgage Rates
- Bond investors pushed yields down after weak jobs revisions, which lowered mortgage rates despite the Fed not cutting.
- Mortgage rates track bond yields and recession fears more than the Fed's federal funds rate.
Buy Only If Deal Works With Today's Rates
- If you have a deal that works at current rates, lock a mortgage and act rather than waiting for lower rates.
- Do not buy a property that only works if mortgage rates decline later.