Buying a House Before Year-End? Here's What Matters

If you're thinking about buying a house before 2025 ends, the market's actually not as bad as it's been. Mortgage rates have dropped from their insane highs. There are more houses available. Prices aren't climbing like crazy anymore. And according to new data, there's one week in October that might be your best shot at a deal.

October 12 to 18. That's the week to circle on your calendar.

Mortgage Rates Have Come Down (But They're Not Amazing)

Mortgage rates are sitting in the low-to-mid-6% range right now for a 30-year fixed mortgage. That's way better than the 7.79% peak from October 2023, but still nowhere near the cheap rates people got during COVID.

Nobody knows where rates are going next. Don't waste time trying to predict it. Just shop around aggressively. Get quotes from multiple lenders on the same day and compare the annual percentage rate, not just the advertised number.

Here's why it matters: On a $350,000 mortgage, the difference between 6.5% and 7% is about $117 a month. Over 30 years, that's more than $40,000 in interest. Locking in at the right time could save you the cost of a new car.

There Are Actually Houses to Look At

For years, the biggest problem has been finding anything to buy. Sellers stayed put because they didn't want to give up their low rates. That's finally changing.

The National Association of Realtors says inventory hit 1.53 million homes in August—an 11.7% increase from last year. More houses on the market means buyers finally have some leverage.

New construction is even better. Builders have about 9.2 months of supply sitting there, so they're motivated. You'll see incentives like closing cost help, rate buydowns, and free upgrades.

This is completely different from a couple years ago when people were waiving inspections just to compete. Now you can negotiate repairs and closing costs, especially if a house has been sitting there for weeks.

Prices Are High But Growth Has Slowed

If you've been waiting for prices to crash, don't hold your breath. National prices haven't dropped much, but the pace of growth has slowed way down. The Federal Housing Finance Agency said annual home prices actually fell 0.1% in July.

National numbers don't mean much though. Your local market is what matters. If comparable homes in your area are selling for less than list prices, that's your leverage for negotiating.

Your Rent Keeps Going Up

Rents are still climbing about 4% higher than a year ago, according to the Bureau of Labor Statistics. That's faster than overall inflation.

If you're paying $1,500 a month and it goes up 4%, that's an extra $60 monthly or $720 a year you're throwing away without building equity. Do that for a few years and locking in a fixed mortgage payment starts looking smarter, even at today's rates.

Why October 12 to 18 Is the Sweet Spot

Realtor.com analyzed over a decade of housing data and found that the week of October 12 to 18 consistently offers the best mix of inventory, fewer buyers, and lower prices.

Here's what makes it different:

Active listings are expected to be about 32.6% higher than at the start of the year. More options means less settling.

Listings get about 30.6% fewer views during this week compared to peak season. Fewer competing buyers means less bidding wars.

Listing prices run about 3.4% below the year's highs. On a $439,000 house, that's roughly $15,000 in potential savings.

About 5.5% of listings have price reductions by mid-October, and homes sit on the market about two weeks longer. Sellers who haven't gotten offers by then are way more willing to negotiate.

Not every market follows this exact pattern. In 45 of the top 50 metro areas, the best week falls within a month of October 12 to 18. Check your local trends, but mid-October is a solid target if you're ready to move.

Should You Buy Now or Wait?

Whether 2025 is the right year depends more on your personal finances than the market. Rates are under 7%. Inventory's better. Price growth has slowed. Those are positives.

But you still need to afford the payment, have stable income, and plan to stay put for a while.

Waiting until 2026? Conditions could be better or worse by then. Rates might drop or go back up. Prices might flatten or start climbing again. Nobody knows. If your finances are solid and you find a house you want, waiting might cost you more than buying now—especially if your rent keeps climbing.

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