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Is It a Good Time to Buy a House?

Inventory’s up — but so are home prices and mortgage rates. Stay cool with a savvy budget during the hot summer season.

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Updated · 6 min read
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The housing market loves to keep us guessing. But when you’re ready, you’re ready — and that matters way more than waiting for a perfect moment.

Whether you’re house hunting right now or just planning ahead, here’s your game plan.

» MORE: Should I buy a house? How to tell if you're ready

How’s the housing market right now?

This summer’s biggest news: More houses are (finally) hitting the market. Buyers can expect more choice and less competition. Skip ahead to read about:

» MORE: Calculator: How much house can I afford?

Weekly average mortgage rates

Like a summer heat wave, mortgage rates aren’t giving any relief — and it’s making buyers sweat.

The interest rate on a 30-year fixed-rate mortgage averaged 6.85% annual percentage rate (APR) for the week ending July 24, up one point from last week and up 16 basis points from a year ago, according to rates provided to NerdWallet by Zillow. A basis point is one one-hundredth of 1%.

Average weekly mortgage rates

Mortgage type

APR

30-year fixed mortgage

6.85%

15-year fixed mortgage

5.91%

5-year adjustable

7.42%

Averages are for the week ending July 24, 2025, according to rates provided to NerdWallet by Zillow.

🤓Nerdy Tip

Each mortgage lender sets their own rates and fees. Compare offers from at least three mortgage lenders to get the best deal. Rate shopping can save you thousands of dollars over the life of the loan.

To learn more about mortgage rates, check out these resources from NerdWallet:

How do mortgage rates affect housing costs?

When mortgage rates are high, your home buying budget doesn’t stretch as far. Let’s say you’re prepared to make a 20% down payment on a $350,000 house. Here’s what your monthly payments would look like at different interest rates:

Interest rate

Monthly principal + interest*

5.5%

$1,590

5.75%

$1,634

6%

$1,679

6.25%

$1,724

6.5%

$1,770

6.75%

$1,816

7%

$1,863

7.25%

$1,910

7.5%

$1,958

*For a 30-year fixed-rate mortgage. Does not include homeowners insurance or property taxes.

» MORE: NerdWallet’s picks: Best mortgage lenders

Mortgage loans from our partners

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Mortgage loans from our partners

NBKC - PURCHASE logo
Check Rate

on NBKC

NBKC

4.5

NerdWallet rating 
NBKC - PURCHASE logo

4.5

NerdWallet rating 
Min. credit score 
620

Min. down payment 
3%

Check Rate

on NBKC

New American Funding - PURCHASE logo
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on New American Funding

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4.5

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4.5

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Min. credit score 
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Inflation and the economy

Tariffs + recession whispers = instant overthinking. It’s normal to feel worried about making a long-term financial commitment right now. Here’s how to stay grounded:

  • 🤔 Consider pausing: If your finances feel shaky — for example, you’re worried about job security or paying bills — it’s wise to hold off.

  • 😌 Stay the course: If your income is steady and your budget says the numbers work, don’t let scary “what if” headlines throw you off track.

Did you know...

The Federal Reserve, the nation’s central bank, indirectly influences interest rates on all loans (including mortgages). With persistent inflation, the committee has signaled it won’t cut the federal funds rate until this fall, at the earliest.

» MORE: How the Federal Reserve affects mortgage rates

Is it a buyer’s or seller’s market?

Right now, it's a moderate sellers market. In a seller's market, sellers have the upper hand. In a buyer's market, buyers have the upper hand.

Right now: Seller’s market (moderate)

After years of sellers having the upper hand, the vibe is finally shifting.

“Outside of a temporary blip early in the pandemic, we’re likely to see the most buyer-friendly summer in nine years,” Danielle Hale, chief economist at Realtor.com, said in a statement.

Here are the signs she flags of a more balanced market:

  • ✅ More houses to choose from

  • ✅ Less competition

  • ✅ Wiggle room on price (including sellers accepting offers below asking)

  • ✅ Willingness to negotiate on contract terms

» MORE: How to win a bidding war on a house

What’s the difference between a buyer’s market and a seller’s market?

Whether we’re in a buyer’s or seller’s market comes down to supply and demand. Available inventory affects who has the upper hand in negotiations.

  • 📈 Buyer’s market = high inventory. Buyers have lots of choices and can take their time. Price cuts are common. Buyers might ask sellers to cover some costs or fees.

  • 📉 Seller’s market = low inventory: Buyers have fewer choices. Prices and competition heat up. Expect multiple offers above asking price.

  • ⚖️ Balanced market = enough homes to go around: Supply and demand are roughly even. This generally happens when the real estate market has about six months’ worth of available inventory.

Did you know...

When a house is listed for sale, it becomes “inventory.” Inventory is measured as a number of months’ supply at the current sales pace. A six-month supply means it would take six months to sell all listed homes, if no new ones came on the market.

Let’s dig into the details using June 2025 data from the National Association of Realtors (NAR).

Inventory: A positive shift

Good news: Inventory is up more than 15% compared to a year ago, reports the NAR.

Currently, inventory sits at a 4.7-month supply of homes for sale, up from four months in June 2024.

Home prices: High and still climbing

Meanwhile, home prices continue their upward trend. Year-over-year prices have gone up each month for 24 months and counting. The national median price for existing homes sold in June was $435,300, up 2% from June 2024, according to the NAR.

Year-over-year prices differ across the four U.S. regions, Midwest, Northeast, South and West. Here’s a breakdown:

  • Midwest: $337,600 up 3.4%

  • Northeast: $543,300, up 4.2%

  • South: $374,500, up 0.3%

  • West: $636,100, up 1%

“Multiple years of undersupply are driving the record high home price,” said Lawrence Yun, NAR chief economist, in a news release. “Home construction continues to lag population growth. This is holding back first-time home buyers from entering the market.”

🤓Nerdy Tip

Buying a house is expensive up front, but it can help you build long-term wealth. Try our rent vs. buy calculator to compare costs over time and see your break-even point.

» MORE: How much does it cost to buy a house?

Home sales: “Meh” momentum

The steep cost of buying might be to blame for fairly flat home sales. Sales of existing homes slipped 2.7% from May to June. Sales remained flat compared to last year.

"High mortgage rates are causing home sales to remain stuck at cyclical lows,” Yun said. “If the average mortgage rates were to decline to 6%, our scenario analysis suggests an additional 160,000 renters becoming first-time homeowners and elevated sales activity from existing homeowners."

Competition: Easing up

The June 2025 Realtors Confidence Index, a survey of the NAR’s members, highlights recent trends real estate agents are seeing in their local markets that are easing the competition among buyers. Some shifts to note:

  • Bidding wars aren’t the norm. A home listed for sale received an average 2.4 offers in May, down from 2.5 last month and 2.9 last year. For context: In the era of hot bidding wars in 2021 and 2022, the average was around five offers per home.

  • Few homes are selling above list price. In June, 21% of homes sold above listing price, down from 28% last month and 29% last year.

  • Homes are staying on the market longer than last year. Houses stayed on the market for a median 27 days in June, the same as last month and up from 22 days last year.

Overall, though, demand still outpaces supply. This is hardly a mellow market: Good homes sell quickly, and buyers should still expect competition out there.

» MORE: How to buy a house, step by step

Should I buy a house now or wait?

Ultimately, whether it’s a good time to buy comes down to your personal financial readiness. If your credit score needs work or you’re in major debt, consider tackling those goals first. You also need to be emotionally ready for the commitment of owning a house.

Here are some green flags that it’s a good time to buy.

  • ✅ Stability: You have steady income and employment, and you’re ready to stay in one place for several years.

  • ✅ Lifestyle fit: For first-time buyers, you’re up for the responsibility of paying for maintenance and repairs. For repeat buyers, your current home no longer meets your needs: You’re ready for more space, a new neighborhood or to downsize.

  • ✅ Savings: You'll need money for a down payment and closing costs, as well as for moving costs and other expenses.

  • ✅ Low debt: Your debt-to-income ratio (DTI) shows how much of your monthly income goes toward paying debt (like student loans, car payments or credit cards). The lower your DTI, the better your mortgage rates and terms. A DTI of 36% or below is most attractive to lenders.

  • ✅ Good credit score: Borrowers with credit scores of 740 and above get the best mortgage rates and terms. It’s possible to qualify with a score in the 600s, but your options are limited.

Did you know...

According to mortgage data provider ICE Mortgage Technology, the average FICO credit score for purchase mortgages in the last 30 days was 736. The average DTI was 40%.

» MORE: Home loans for bad credit

The takeaway: If you’re ready to buy, jump in now

Don’t try to time the market perfectly. If you’re in a good spot, national trends don’t have to be. Do you have a stable income, solid savings and a desire to settle down? You can find a way to make it work.

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