Is Now a Good Time to Buy a Home? What Mortgage Lenders Want You to Know in 2025

If you're wondering if it's a good time to buy real estate, you're not alone. In today's evolving real estate market, this question is top of mind for many Americans. With mortgage rates and home prices constantly shifting, buyers need clarity, not confusion.

At Fairway Heartland, we believe in educating and empowering our clients. Here's what every prospective homebuyer in Sioux Falls should know about the 2025 housing market.

Mortgage Rates Are Easing, But Still Higher Than Pre-2020

After two years of rising rates triggered by inflation, mortgage interest rates have finally started to moderate. As of mid-2025, the national average for a 30-year fixed mortgage is in the mid- to upper-6 % range. While that's higher than the record lows we saw in 2020 and 2021, it's also lower than the peaks of 2022 and 2023.

What does this mean for homebuyers?

• Home values have stabilized across many markets

• Inventory is slowly growing in some areas

• Competition among buyers is less intense than during the pandemic boom

Home Prices Are Leveling, and Waiting Could Backfire

Some buyers are choosing to wait out the market, hoping for lower rates. But that strategy comes with risk. Historically, when rates dip, demand surges, and prices often rise as a result. This can erase any benefit you might gain from a slightly lower interest rate.

That is why many smart homebuyers in Sioux Falls, Harrisburg, Tea, and Brandon are moving forward now and planning to refinance later.

Final Thought: Don't Try to Time the Market, Time Your Life

The best time to buy a home isn't dictated by headlines. It's based on your personal readiness: financial, emotional, and situational. Trying to time the market perfectly is nearly impossible. Instead, focus on timing that fits your life.

If you're ready to take the next step, connect with a loan officer who will walk beside you with transparency and expertise.

Talk to a Fairway Heartland loan officer, Troy Lage, NMLS #400287, at fairwayheartland.com/contact