Interest rates are finally starting to ease. After the Fed’s first cut of the year, mortgage rates have dipped closer to 6%, and economists are forecasting additional reductions through December. For buyers, that could mean improved affordability — but also more competition as others jump back into the market. For sellers, it may bring a larger pool of motivated buyers this fall and winter.

Curious what this means for your plans? Let’s dive into the outlook and what to expect through the end of 2025.

Buying your first home in 2025? Here’s what you need to know to move forward with confidence and clarity.