Falling Mortgage Rates Could Revitalize the Housing Market – What It Means for Buyers & Sellers

Mortgage rates have dropped to their lowest levels since December, making homeownership more affordable. Learn what this means for buyers and sellers in today’s market.
Mar 19, 2025

After a slow winter, mortgage rates have dropped to their lowest levels since December, offering a fresh opportunity for homebuyers and sellers. With more homes on the market, slower home price growth, and longer listing times, the housing market is starting to shift in favor of buyers—but seller-friendly cities still exist.

So, what does this mean for you? Whether you’re looking to buy your first home, move up, or sell, here’s what you need to know about the changing real estate landscape.


The Current Housing Market: What’s Happening?

  • More Homes for Sale – In February, 1.04 million homes were listed for sale, marking the highest inventory for this time of year since 2020. More choices mean less competition for buyers.

  • Home Prices Are Stabilizing – After years of sharp increases, home value growth has slowed to 2.1% year-over-year, the weakest price appreciation in 18 months.

  • Homes Are Sitting on the Market Longer – Listings now take an average of 23 days to go pending, the longest timeline seen since before the pandemic. This means buyers have more negotiating power than in previous years.


Who Has the Advantage? Buyers or Sellers?

Nationally, the market is becoming more balanced, but location matters. Some cities still heavily favor sellers, while others offer buyers more flexibility and bargaining power.

Best Cities for Sellers (High Demand, Limited Supply)

  • San Jose, CA – Home prices are up 7.6% year-over-year, reflecting continued strong demand.
  • San Francisco, CA – Prices have increased 2.4% YoY, keeping it a competitive market.
  • Washington, D.C. – Even with 20.4% more inventory, demand is keeping it a seller’s market.
  • Boston, MA – High demand in the Northeast keeps sellers in control.
  • New York, NY – Prices are up 5.6%, and homes are still selling quickly.

Best Cities for Buyers (More Supply, Better Deals)

  • Miami, FLHome values have dipped 0.2%, and inventory is up 23.7%.
  • New Orleans, LA – Prices dropped 1.7% YoY, giving buyers better affordability.
  • Jacksonville, FL – Inventory has increased 26.3%, meaning more options for buyers.
  • Tampa, FL – Prices are down 3.6%, offering buyers more room to negotiate.
  • Memphis, TN – More listings give buyers a stronger position in the market.

What This Means for You

For Buyers:

  • Lower mortgage rates mean more affordability—locking in a rate now could save you thousands over time.
  • More homes on the market = less competition and better deals.
  • In buyer-friendly markets, sellers are more willing to negotiate.

For Sellers:

  • Pricing your home correctly is more important than ever—overpricing could leave your home sitting on the market.
  • Some markets still favor sellers, especially in high-demand cities where home prices are still climbing.
  • More buyers entering the market due to lower mortgage rates could increase demand in the coming months.

Is Now the Time to Buy or Sell?

With mortgage rates dropping and inventory rising, we may see a busier spring housing market than expected. If you’ve been waiting to buy, sell, or refinance, now is the time to explore your options.

Thinking about making a move? Let’s chat about how the current market conditions can work in your favor.

Disclaimer: Always consult with a qualified real estate or mortgage professional before making any financial decisions.

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Source: National Mortgage Professional

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