Mortgage rates have decreased in early 2025, providing homebuyers with potential borrowing relief, yet the sluggish housing market and economic uncertainty remain concerning. With the average 30-year fixed mortgage rate at 6.76%, down from 7.04% in January, buyers face the challenge of limited supply due to the “lock-in” effect, where current homeowners hesitate to sell. Experts suggest that despite market difficulties, purchasing now may be advantageous, as limited inventory could stabilize or increase property values.
