Should One Consider Purchasing a Residential Property Now?

In the current housing market, finding the right home and negotiating a better price has become more feasible for homebuyers, according to recent data. Here's a breakdown of the key trends shaping the mortgage market and home sales.

Market Conditions

The market is experiencing a gradual increase in inventory, with the supply sitting at a 4.6-month supply as of the latest data. This improvement provides buyers with more choices and helps slow down the fast-paced market. Last year, inventory was significantly lower, creating a seller's market with fierce competition and price increases.

Median Home Prices

The median home price in the Northeast stands at $509,300, marking an increase of 0.8%. Meanwhile, the Midwest and South have seen a rise of 3.9% and 0.6% respectively, with median home prices at $333,800 and $367,400 respectively. The West, however, has seen a slight decrease of 1.4%, with a median home price of $620,700. The national median price for existing homes sold in July was $422,400, representing a minimal increase of 0.2% compared to July 2024.

Mortgage Rates

Interest rates have been on the rise in recent months. The interest rate on a 30-year fixed-rate mortgage averaged 6.62% APR for the week ending Sept. 4, 2025. For a 15-year fixed-rate mortgage, the average interest rate stood at 5.65%, while the rate for a 5-year adjustable mortgage averaged 7.07%.

Shopping for Mortgages

Comparing offers from at least three mortgage lenders can save thousands of dollars over the life of the loan. Some of the options mentioned include NBKC, New American Funding, GO Mortgage, Rate, Rocket Mortgage, Veterans United, Figure, and FourLeaf Federal Credit Union. NerdWallet's ratings for these lenders range from 4.0 to 5.0, providing valuable insights for potential borrowers.

Bidding Wars and Home Sales

Bidding wars aren't as common as they once were, with an average of 2.1 offers on a house in July. Fewer homes are also selling above list price, with 21% doing so in July, a significant decrease from previous months. Sales of existing homes have increased by 2% in July, indicating a more balanced market.

Impact on Credit Scores

Rate shopping can affect your credit score, but multiple inquiries within a short period are usually treated as one. This means that homebuyers can compare rates without worrying too much about negatively impacting their credit scores.

Looking Ahead

The Federal Reserve is expected to have a rate cut at their next meeting in September, which could potentially lower mortgage rates. With wage growth comfortably outpacing home price growth, buyers have more financial flexibility and are in a stronger position to navigate the current market.

NerdWallet provides resources to help homebuyers learn more about mortgage rates, including current rates, forecasts, and shopping tips. With a better understanding of the market and the available options, homebuyers can make informed decisions and find the best mortgage deals.