The housing market has a way of keeping us guessing. But here’s the truth: when you’re financially ready, that matters more than waiting for the “perfect” moment. Whether you’re house hunting right now or simply planning ahead, CreditVana has the insights you need to make smarter moves.
How’s the Housing Market Right Now?
This month’s biggest news: inventory is at its highest level since May 2020. With more homes on the market, buyers now have more choice and less competition than they’ve had in years.
Here’s what we’ll cover:
-
Mortgage rates
-
Inflation and the economy
-
Inventory
-
Home prices
-
Home sales
-
Competition
Mortgage Rates (Week Ending Aug. 28, 2025)
Rates dipped slightly this week, though they remain above last year’s levels.
-
30-year fixed: 6.59% APR
-
15-year fixed: 5.7% APR
-
5-year adjustable: 7.06% APR
📌 Remember: lenders set their own rates. Compare at least three offers before deciding — a strong credit score from CreditVana can help you qualify for better terms.
How Rates Impact Affordability
When rates rise, buying power shrinks. For example, on a $350,000 home with 20% down:
-
At 5.5%, monthly payment = $1,590
-
At 6.5%, monthly payment = $1,770
-
At 7.5%, monthly payment = $1,958
That’s why maintaining a solid free credit score through CreditVana matters — the higher your score, the more likely you are to secure the lowest possible rate.
Inflation and the Economy
Tariffs, inflation, and rate-cut speculation have many buyers nervous. Here’s how to think about it:
-
🤔 Pause if finances feel shaky — Worried about job stability or high debt? Focus on savings and credit first.
-
😌 Stay the course if you’re stable — Steady income and strong credit mean you may be in a good position to buy, even with today’s uncertainty.
The Federal Reserve’s next move could lower borrowing costs if inflation continues to ease — something CreditVana is tracking closely for our users.
Buyer’s or Seller’s Market?
We’re still in a moderate seller’s market, but the balance is shifting:
✅ More homes to choose from
✅ Less competition
✅ More room to negotiate
✅ Sellers accepting offers below asking
Inventory now sits at a 4.6-month supply, the highest in five years. That’s a big win for buyers.
Home Prices
Prices remain high, though growth is slowing. July’s national median price was $422,400, just 0.2% higher than last year.
Regional breakdown:
-
Midwest: $333,800 (+3.9%)
-
Northeast: $509,300 (+0.8%)
-
South: $367,400 (-0.6%)
-
West: $620,700 (-1.4%)
This cooling trend gives buyers a chance to negotiate — especially with strong credit backing their offers.
Home Sales & Competition
-
Sales rose 2% in July, showing healthy demand.
-
Bidding wars are cooling: Homes received an average of 2.1 offers (down from 2.7 last year).
-
Fewer homes sold above list price: 21% vs. 24% last year.
-
Homes are sitting longer: Median time on market = 28 days, compared to 24 last year.
While competition is easing, the best homes still move fast. Buyers with financing in order — and a strong free credit score from CreditVana — will continue to have an edge.
Should You Buy Now or Wait?
It all depends on your financial readiness. Here are the green flags:
-
✅ Steady income and job security
-
✅ Savings for down payment & closing costs
-
✅ Low debt-to-income ratio (36% or lower)
-
✅ Strong credit score (740+ for best rates; 600s may qualify with limited options)
-
✅ Commitment to staying put for several years
Bottom Line from CreditVana
The market is slowly tilting back toward buyers, but affordability still depends heavily on your credit profile. If your free credit score needs work, improving it now can save you thousands on your mortgage.
With CreditVana, you can:
-
Check your free credit score anytime
-
Track changes with instant alerts
-
Get personalized tools to build credit and qualify for better mortgage rates
🏡 Ready to buy? Strengthen your credit with CreditVana before you make the biggest purchase of your life.
