If you’re a prospective homebuyer, we’ve got some good news — well, relatively good news. For the sixth straight week, mortgage rates have dipped, with the average 30-year fixed rate settling at 6.76% for the week ending February 27, 2025.
Is 6.76% a steal? Not exactly. Compared to the ultra-low rates we all got used to a few years ago, it’s like paying full price for an airline seat in economy with no extra legroom. But compared to where we were in 2023? We’ll call it progress.
More importantly, this steady, slow drip of declining rates brings a sense of much-needed stability to the housing market — and just in time for the spring buying season, when the real estate world traditionally dusts off its “Open House” signs and buyers emerge from hibernation.
Let’s dive into what’s happening with rates, inventory, prices, and whether it’s finally time to ditch your landlord and find a place to call your own.
Mortgage Rates at 6.76% – Small Steps, Big Impact
As of February 27, the average 30-year fixed mortgage rate slipped to 6.76%, down from 6.85% the previous week. Sure, that’s only a 0.09% drop, but these days, every little bit helps — especially if you’re trying to squeeze every dollar out of your monthly budget.
According to Freddie Mac’s Chief Economist Sam Khater, this stretch of sub-7% rates for six consecutive weeks is actually a pretty big deal. Khater noted, “This stability continues to bode well for potential buyers and sellers as we approach the spring homebuying season.”
Chart: https://www.freddiemac.com/pmms
In other words, predictability is priceless when you’re making one of the biggest financial decisions of your life. Knowing rates aren’t bouncing around like a toddler on a sugar high makes it easier for buyers and sellers to plan ahead — and that’s a welcome shift.
Spring Market Kickoff – It’s Game Time
Speaking of planning ahead, the unofficial start to the spring housing market kicked off the moment the Super Bowl confetti hit the turf. That’s when buyers start lining up pre-approvals, sellers call in stagers, and real estate agents double up on coffee.
By March, things heat up for real. Families want to move before the next school year, so spring is prime time for deals. And this year, with rates calming down (slightly) and inventory rising (more on that in a minute), there’s some real hope that 2025’s spring season could be more balanced than the feeding frenzy of 2021-2022.
Affordability Is Still Tough — But Stability Helps
Let’s be honest: home prices and mortgage rates are still a tough pill to swallow. If you’ve been holding out for 3% rates to magically return, we’ve got some bad news — they’re gone, probably forever.
But there’s some silver lining here. With rates hovering near 6.76% instead of see-sawing wildly, it’s a lot easier to plan your budget. No more guessing what your monthly payment will be next week.
Hannah Jones, senior economic research analyst at Realtor.com, puts it bluntly: “Stubborn inflation will likely continue to hinder mortgage rate progress.” Translation: We’re not out of the woods yet, but at least we’re not running in circles.
Home Prices Are Cooling (Finally)
Now for some actual good news for buyers: home prices aren’t rising like they used to.
According to Realtor.com, for the week ending February 15, the median list price of homes was down 0.5% compared to the same week last year. That marks 38 straight weeks where prices were either flat or declining compared to the year before.
If you’ve been house-hunting for a while, you know this is a refreshing change of pace. Just a couple of years ago, prices were climbing faster than a cat in a room full of rocking chairs. Now, buyers can take their time, negotiate, and maybe even score a price reduction.
Joel Berner, senior economist at Realtor.com, put it this way: “The cooling of the market means buyers can take their time to find the right home for their needs, possibly even one with a reduced price.”
It’s not exactly a buyer’s market yet — but the days of waiving inspections and offering your firstborn to get a house are fading fast.
Inventory Is Growing – More Choices, Fewer Bidding Wars
Here’s another win for buyers: there are finally more homes to choose from. New listings for the week ending February 15 were up 5% year-over-year, and total active inventory is up a whopping 27.6% compared to this time last year, according to Realtor.com.
That’s 67 consecutive weeks of rising inventory, which is basically a lifetime in real estate. For buyers, this means more options, less desperation, and fewer bidding wars. You might actually have time to think about a home before writing an offer — imagine that!
Gone are the days when you’d tour a house for 12 minutes and feel pressured to bid like you were at a Sotheby’s auction. With more homes sitting on the market, buyers finally have some breathing room — a chance to compare, contrast, and maybe even fall in love with a house after seeing it twice. In some areas, we’re even seeing price reductions — a phrase that was practically extinct a couple of years ago. The best part? When you do make an offer, there’s a much better chance you won’t have to fight off 17 other buyers to get your foot in the door. 
This shift doesn’t mean sellers are desperate, but it does mean buyers have more leverage than they’ve had in quite some time — and that’s a refreshing change.
Berner chimed in on this too, saying “Buyers can expect more options to choose from in 2025 as we enter the start of the homebuying season.”
Homes Are Sitting Longer – No More Lightning-Fast Sales
Another sign that balance is creeping back into the market? Homes are sticking around a little longer.
For the week ending February 15, the typical home spent six more days on the market than it did a year ago. That may not sound like much, but in a world where homes were once selling faster than concert tickets, it’s a meaningful shift.
That means for the first time in what feels like forever, buyers can actually slow down a bit — and that’s a huge shift from the frenzy we saw over the past few years.
Remember the pandemic-era house hunts? You’d step inside a home, barely glance at the kitchen, and your agent was already nudging you to submit a full-price, no-contingencies offer before you even made it to the backyard. Blink, and that house was gone — snatched up by someone offering over asking with an offer letter gushing about how they could totally picture raising their golden retriever there.
Now? Not so much.
With homes sitting on the market longer, you can actually visit a home more than once — maybe even in daylight and at night (because that dreamy neighborhood might hit different when the streetlights flicker). You can sleep on it, talk it over with your family, and even run some actual numbers without feeling like you’re going to miss out if you take a lunch break.
Even better? Sellers are more open to negotiating. Price reductions, concessions for repairs, or maybe even help with closing costs — these are all back on the table in many markets. In short, the pressure cooker environment is cooling off, and buyers finally have the luxury of choice and time — two things that have been in painfully short supply over the past few years.
So, if you’re someone who likes to think before making a six-figure decision (which seems reasonable, right?), 2025 might actually be your year.
Berner summed it up best: “This is all good news for buyers, who had been feeling the effects of the post-pandemic pinch in for-sale listings for several years until the market entered its current rebalancing phase.”
What Buyers Should Do Now
So, what’s a smart buyer to do in this shifting market? Here are a few pointers:
- Lock your rate soon. Even small increases can add up over 30 years.
- Get pre-approved. You want to move fast when the right house pops up.
- Negotiate! With more homes on the market, sellers are more flexible than they’ve been in years.
- Work with an agent who knows your market. Local knowledge is gold.
What Sellers Should Expect
Sellers, your days of naming your price and getting it are probably over. But that doesn’t mean you can’t still get a great deal — you just have to be realistic.
- Price competitively from the start. Overpricing will leave you sitting.
- Expect some negotiation. Buyers know they have options now.
- Boost your curb appeal. Small upgrades can make a big difference.
- If you’re buying too, you’ll benefit from the more balanced market.
The Bottom Line – A Market Finding Its Footing
The 2025 spring housing market isn’t exactly a buyer’s paradise, but it’s a whole lot better than the frantic feeding frenzy we saw during the pandemic.
With rates dipping to 6.76%, prices cooling, and inventory rising, buyers have more breathing room than they’ve had in years.
If you’ve been sitting on the sidelines waiting for the “right time” — this spring might just be it. After all, the perfect home doesn’t wait forever — and neither should you.
