Making the Move from Renting to Homeownership in 2025: What to Know
- Author: Aubrey Sipes
- Posted: 2025-11-19
The real estate market in the U.S. is currently offering new opportunities that might make owning a home more possible than it has been in recent years.
Here’s what you should know:
Mortgage Rates Are Coming Down
One of the biggest changes helping buyers right now is lower mortgage rates. After hitting highs of almost 8% in late 2023, the average 30-year mortgage rate has dropped to about 6.22% by November 2025.
Experts expect rates might even go lower if the Federal Reserve makes more rate cuts.
Tip: Even though you can’t know exactly how rates will change, it’s smart to check with several lenders to compare deals. Some lenders also let you “lock in” a lower rate before your purchase is finished if rates drop further.
More Homes to Choose From
Another positive sign for buyers is the growing number of homes for sale. There are more homes on the market now—both existing houses and new builds. This gives renters more choices and more ability to negotiate prices or ask for perks like help with closing costs.
- More Existing Homes: In September 2025, there were 14% more homes for sale compared to a year ago.
- New Homes: Builders are adding more properties and often offer incentives to win over buyers.
Are Home Prices Dropping?
Nationwide, home prices are not falling, but the increase has slowed a lot. This means you might not see big discounts, but the high-speed price jumps of the past few years have eased up.
Is It Time to Buy Instead of Rent?
While the market is showing better conditions, the most important thing is your own financial situation. Make sure you’re prepared for the expenses that come with owning a home, like the down payment, monthly payments, insurance, and maintenance costs.
However, with mortgage rates lower and more homes available, 2025 could be a good time for renters to seriously think about buying a home.
If your finances are in good shape and you find a property you love, this may be your chance to become a homeowner.
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Read next: Where It’s Easiest to Find a Rental for Less Than $1,000
