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uying a home in 2025 may be a smart move for some, but not everyone will benefit from the current market conditions. Mortgage rates have been rising since early 2022, peaking at over 8% in October 2023, before dropping slightly to around 6.85%. Experts predict modest price gains and increased inventory this year, which could make it easier for buyers to navigate the market.

    However, high mortgage rates may still be a challenge for many homebuyers. "Affordability is a prominent problem in the housing market," says Jeremy Schachter, branch manager at Fairway Independent Mortgage. "Increased rates on mortgages as well as higher insurance costs make the mortgage payments sometimes unobtainable or out of reach."

    Despite this, some experts believe that buying a home now could be beneficial for those with solid finances and stable jobs. Paul Johansen, a real estate broker at The Corcoran Group, suggests that purchasing a home can lock in housing costs and provide long-term stability.

    However, others recommend waiting until later in the year or even next year when mortgage rates are expected to drop further. Brian Rudderow, a real estate investor at HBR Colorado, is holding off buying until fall 2025 due to expected rate drops and price stabilization.

    Ultimately, whether to buy a home in 2025 depends on individual financial situations and market conditions. Experts stress that it's essential to stay informed about the local market and consider all costs before making a decision.

    Some benefits of buying a home now include locking in housing costs and avoiding rising rents or prices in your area. Additionally, a slower market during the winter months may provide fewer buyers to compete with and more motivated sellers.

    To prepare for buying a home, it's recommended to improve your credit score and get preapproved for a mortgage. "A mortgage pre-approval is a great way to see what you'd actually qualify for," says Corcoran. "It makes the numbers real."