The real estate market may be in its winter slump, but spring is just around the corner—only five weeks away!

Higher interest rates have kept many home buyers and sellers off the sidelines in recent years. But could a change be on the horizon? Today, mortgage expert Dale Vermillion joins us with a market forecast and some practical advice on how to move forward.

Dale Vermillion is the author of [_Navigating the Mortgage Maze: The Simple Truth About Financing Your Home_](https://www.amazon.com/Navigating-Mortgage-Maze-Simple-Financing/dp/0802483119/ref=sr_1_1?dib=eyJ2IjoiMSJ9.D0Kp6YcIdbXiMOjdBohhyAuLsR_SNOn0gxyD82RrQDCF3-PPUvtEfMd2h_6A_37j9YidRgXWLYF7ql7aoVRU-UvsdJcwrTw3RTnkty53ieYqqZK5OuB6JEqYfQCQnIM4krlWnvl_rV0V6VeWf9mupTmgVEV0N36X79OkInGasMYfmfJv8krw3RnlsbeSQM5uWblP3d9aTwogvRLq5Xipj9iIEhX7e9PEPb2iOx7nsgI.vtLukHHdmCBH466KOEGY2-q9klpVl0NSFSigLfh5mEU&dib_tag=se&keywords=dale+vermillion&qid=1713761384&sr=8-1)_._ This book covers everything you need to know about securing a mortgage—all from a biblical perspective.

### Is the Housing Market About to Shift?

For the past few years, many homeowners have stayed put due to high interest rates, a phenomenon known as the lock-in effect. However, recent data suggests a shift might be on the horizon.

* Existing home sales rose by 6.1% in November 2024, signaling a potential increase in market activity.  

* While December and January are traditionally slow, spring is expected to bring renewed momentum as buyers become more eager to move.  

* Consumer confidence is growing, and as patience wears thin, many are deciding to buy now and refinance later.

### Should Buyers Accept Current Interest Rates?

Many potential buyers have been waiting for rates to drop before making a move. But sometimes, waiting is no longer an option. Life goes on, and people need to relocate for jobs, family, or other personal reasons.

That said, budgeting wisely is key. Before purchasing a home, we recommend:

* Assessing what you can truly afford  

* Creating a solid budget to plan for mortgage payments  

* Considering the long-term potential to refinance in a few years

While mortgage rates remain higher than the record lows of a few years ago, waiting indefinitely for the “perfect” rate may mean missing out on opportunities.

### What to Expect From Interest Rates in 2025

Many homebuyers have been banking on rate cuts to ease affordability, but will they actually happen?

* Only one or two rate cuts are expected in 2025, and even those are not guaranteed.  

* The biggest factor influencing mortgage rates is inflation, which is tied to federal deficit control.  

* Unlike previous periods of low mortgage rates, the government is unlikely to buy trillions in mortgage-backed securities to artificially lower rates.

**Bottom line:** Mortgage rates are likely to stay between 6% and 7% for most of 2025, with a slight possibility of dipping into the high 5% range.

### Navigating the 2025 Housing Market

Whether you’re looking to buy or sell, market conditions are changing, and understanding them is crucial.

### For Sellers:

* Home values are flattening or declining in some areas.  

* In Q3 of 2024, annual real estate appreciation dropped to 2.5% (an average of $5,700 per home), starkly contrasting with Q2’s 8% growth ($25,000 per home).  

* If you’re considering selling, now may be the best time to maximize your home’s value before the market shifts further.

### For Buyers:

* Affordability should be your top priority.  

* Home price appreciation may slow down in 2025, making it a good time to enter the market without facing rapid price hikes.  

* While interest rates remain elevated, they will eventually decline, giving buyers a future opportunity to refinance.  

* Homeownership still offers significant tax benefits, making it a worthwhile long-term investment.

### Mortgage Trends: What’s Changed?

If it’s been a while since you’ve looked into getting a mortgage, you may be surprised by the range of options now available.

* New mortgage products cater to diverse financial situations.  

* Credit challenges? There are more flexible loan options than before.  

* Need down payment assistance? Programs exist to help qualified buyers.

The housing market is shifting, and while interest rates may not drop dramatically, buyers and sellers alike have opportunities in 2025. For those needing to move, careful planning and budgeting will be essential. And for sellers, this could be a good time to capitalize on home values before potential declines.

No matter your situation, making an informed, strategic decision is key, and consulting professionals can confidently help you navigate the mortgage landscape.

For more expert insights on financing your home, check out [_The Mortgage Maze: The Simple Truth About Financing Your Home_](https://www.amazon.com/Navigating-Mortgage-Maze-Simple-Financing/dp/0802483119/ref=sr_1_1?crid=1W9FFEHL4949H&dib=eyJ2IjoiMSJ9.D0Kp6YcIdbXiMOjdBohhyIxOobFaNW0uifPaY1a0BdY6LUA6zquyx1YDL5IC0m9BYUNHYpm9zKtwMfLmS7ttJo6C79-HrSXshmTwMraqrl9Mz3jOlquWklPkSO_gltTlK0X0GK7WNnqWYTgxXkebUwn9HsMcQDgNNrakEKn4mqs.3GM4sYHsw6JR3n1UobpJqLBLugzlsxvoulbKzUIn7x0&dib_tag=se&keywords=dale+vermillion&qid=1738362194&sprefix=dale+vermillion%2Caps%2C94&sr=8-1) by Dale Vermillion.

### On Today’s Program, Rob Answers Listener Questions:

* I'm 37, with a family of five. I've been building a home on the property I bought three years ago, using cash so far. I have the funds for the roof this year, but I need to take out a loan or wait three more years to pay cash for the rest. Should I take out a loan to finish it sooner or wait and pay cash?

* I'm 56 and about to take early retirement with a $1,400 monthly pension. Then, I'll return to work in the private sector, making more. I have a 6% mortgage and a 7% HELOC. Should I invest or use the pension money to pay down my debts?

* I'm 76 years old and just finished a messy divorce. I have about $200,000 to invest, but I don't have a house, car payments, or significant debt. What should I do with this money?

* My husband and I are 54 and 57 years old. In 2019, we had $200,000 in savings, but due to COVID-19 and life circumstances, we've depleted all our savings and retirement accounts. We now earn only $65,000 combined. How do we start over and rebuild our finances?

### Resources Mentioned:

* [Faithful Steward: FaithFi’s New Quarterly Publication](https://faithfi.com/give)

* [Navigating the Mortgage Maze: The Simple Truth About Financing Your Home](https://www.amazon.com/Navigating-Mortgage-Maze-Simple-Financing/dp/0802483119/ref=sr_1_1?dib=eyJ2IjoiMSJ9.D0Kp6YcIdbXiMOjdBohhyAuLsR_SNOn0gxyD82RrQDCF3-PPUvtEfMd2h_6A_37j9YidRgXWLYF7ql7aoVRU-UvsdJcwrTw3RTnkty53ieYqqZK5OuB6JEqYfQCQnIM4krlWnvl_rV0V6VeWf9mupTmgVEV0N36X79OkInGasMYfmfJv8krw3RnlsbeSQM5uWblP3d9aTwogvRLq5Xipj9iIEhX7e9PEPb2iOx7nsgI.vtLukHHdmCBH466KOEGY2-q9klpVl0NSFSigLfh5mEU&dib_tag=se&keywords=dale+vermillion&qid=1713761384&sr=8-1)

* [Look At The Sparrows: A 21-Day Devotional on Financial Fear and Anxiety](https://www.faithfi.com/sparrows)

* [Rich Toward God: A Study on the Parable of the Rich Fool](https://www.faithfi.com/rtg)

* [Find a Certified Kingdom Advisor (CKA) or Certified Christian Financial Counselor (CertCFC)](https://www.faithfi.com/find)

* [FaithFi App](https://www.faithfi.com/manage)

<p><p>Remember, you can call in to ask your questions most days at (800) 525-7000. Faith &amp; Finance is also available on the <a href="https://www.moodyradio.org/programs/faith-and-finance/">Moody Radio Network </a>and <a href="https://afr.net/podcasts/faith-finance/">American Family Radio</a>. Visit our website at <a href="https://www.faithfi.com/">FaithFi.com </a>where you can join the FaithFi Community <a href="https://www.faithfi.com/give">and give </a>as we expand our outreach.</p></p>

FaithFi

Faith & Finance is a daily radio ministry hosted by Rob West. The program offers a practical, biblical and good-natured approach to managing your time, talents and resources.

Is 2025 the Right Time to Buy or Sell A House? with Dale Vermillion

FaithFi: Faith & Finance | Feb 11, 2025

Show Notes

Where Faith Meets Finance

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