What’s Shaping Mortgages Right Now
2025 is shaping up to be a big year for homebuyers and homeowners thinking about refinancing. Mortgage rates, home prices, and housing supply are all shifting, which means staying informed can help you make better decisions.
With Lendgo, you can go beyond simply reading about these trends. You can see how they affect your buying power and compare offers from real lenders so you can act quickly.
Trend 1: Rates Are Easing but Still Higher Than Pre-2020
Mortgage rates are still higher than what we saw a few years ago, but they have started to drop slightly in 2025. Freddie Mac reports that rates have dipped again, which is encouraging many homeowners to consider refinancing.
Most 30-year fixed loans are now in the 6 to 7 percent range. If you have a strong credit profile or qualify for programs like VA or FHA loans, you may be able to get an even lower rate. Even a small decrease can save you hundreds over the life of the loan, so it pays to shop around.
Trend 2: Affordability Remains a Challenge but Is Improving
Home price growth has slowed in many regions, and in some markets inventory is beginning to rise. This gives buyers more breathing room and, in some cases, more negotiating power.
However, wages still have not caught up with home prices in many areas. Even with slightly lower rates, the combination of high prices and borrowing costs is keeping affordability tight. This is why it is more important than ever to know your true budget before you start shopping.
Trend 3: Limited Supply Is Still Affecting Buyers
Many current homeowners refinanced when rates were at record lows. They are now reluctant to sell because they would have to trade their low-rate mortgage for a much higher one. This so-called "lock-in effect" is keeping many homes off the market.
In places where inventory is rising, competition among sellers is starting to cool prices, but in many areas, the supply shortage continues to put upward pressure on home values. Buyers may find more opportunities in smaller cities or suburban areas where demand is slightly lower.
Trend 4: ARMs and Alternative Loan Options Are Gaining Popularity
As fixed-rate mortgages stay relatively high, more borrowers are looking at adjustable-rate mortgages (ARMs) or other loan products that start with a lower rate.
ARMs can be a good choice if you plan to refinance or move within a few years, since you can benefit from the lower initial payments before the rate adjusts. The key is to understand the timeline of the adjustment period and have a plan for when it happens.
What This Means for You as a Homebuyer
- Consider locking in a rate now if you find one that fits your budget. Waiting for perfect conditions could end up costing more.
- Know your true buying power by running numbers for different price points, rates, and down payments.
- Explore different loan types including FHA, VA, and ARMs to find the option that works best for your goals.
- Strengthen your financial profile by improving your credit score and lowering your debt-to-income ratio.
Why Lendgo Helps You Navigate These Trends
With so many moving parts in today’s housing market, being prepared is your biggest advantage. Lendgo gives you the tools to:
- See current rates and compare them across multiple lenders
- Use calculators to estimate payments and affordability
- Get pre-approved quickly so you are ready when the right house comes along
Instead of going lender by lender, you can view competitive offers in one place and choose the deal that works for you.
Check Today’s Mortgage Rates and Get Quotes
Use Today’s Market to Your Advantage
2025 is a year of careful planning for homebuyers. Rates are improving, inventory is shifting, and buyers who are prepared can take advantage of these changes.
Lendgo helps you move from research to results by connecting you with lenders who are competing for your business.
