You’ve probably seen plenty of headlines, talk of Fed meetings in July and September, political drama, and economic uncertainty. Here’s what truly matters for homebuyers and agents right now:

Mortgage Rates Still in the Upper 6s, for Now

After peaking at 7.04% in January, average 30-year fixed rates dipped into the mid-6% range by March, then climbed back and have held between 6.7% and 6.9% since early May. As of the last week of July, rates averaged 6.72%, according to Freddie Mac.

Some analysts warn rates could stay elevated or even move higher if new tariff policies add inflationary pressure. In July, the Federal Reserve held off on cutting its benchmark rate, citing the need for more improvement in inflation data.

All eyes are now on the September Fed meeting for potential guidance on when rate cuts might begin. For now, most forecasts point to mortgage rates staying in the upper 6s only a slow, modest decline in mortgage rates through the end of 2025.

Home Prices Are Cooling Off

The July data from Realtor.com July 2025 Monthly Housing Trends Report shows price growth is modest, more homes are lingering on the market, and buyers may have slightly more room to negotiate.

• National median list price in July: $439,450, up just 0.5% from last year. This is staying close to 2023–2024 levels
• Median price per square foot: +0.5% year over year
• 20.6% of listings had a price cut, down slightly from June (first monthly drop in 2025)
• Homes spent a median of 58 days on the market, 5 more than in June, and 7 more than last year.

Sales Activity is Weak, but Inventory Is Slowly Growing

Insights from the Realtor.com July 2025 Monthly Housing Trends Report show more homes are hitting the market, but sellers are showing signs of caution, and buyer activity is still relatively slow.

• Inventory of homes for sale: +24.8% year over year (21st consecutive month of growth)
• Over 1 million active listings for the third month in a row, the highest since the pandemic, but still 13.4% below pre-pandemic levels
• Total unsold inventory (including under contract): +16.9% year over year
• Pending sales: -3% year over year
• New listings: +7.3% year over year, but third straight monthly decline on a seasonally adjusted basis

So, What Does It All Mean?

Amid all the headlines, the most crucial insight is: this may not be a year for dramatic rate improvements, but other factors can help give homebuyers a boost. Home price growth is minimal, and inventory is steadily improving, which gives buyers more options and negotiating room than they’ve had in the past few years.

In many markets, sellers are more willing to offer concessions, cover closing costs, or be flexible on move-in dates. That can put thousands of dollars back in your pocket or lower your monthly payment without a rate change.

Smart buyers focus on what they can control: being financially ready, knowing their goals, and using tools like Movement’s rate locks, so they can make the move when it fits their situation, instead of waiting for the “perfect” time.

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