Housing market good for buyers in 2025: What to expect from real estate this year | Morning in Ameri

24 is real estate market ended with increasing home prices and high mortgage rates, but buyers and sellers are curious what this new year has in store here with us now for a look at what we can expect in 2025 is mortgage lender and senior vp of lending at rate.com jennifer beeston jennifer welcome thank you for having me it's nice to be here it's great to have you so let's look ahead to what to expect this year you've broken down three things you say we should expect from real estate in 2025 the first is about how the market will be for buyers what do you think that's right well so i think buyers need to be prepared for volatile rates we don't really know exactly how the new administration is going to affect rates yet so my advice to buyers on rates would be don't max qualify for that mortgage make sure you have some wiggle room just in case we do see those fluctuations as we see how the market reacts do you think it'll be a buyer's market or a seller's market in 2025 that's a great question and i'm going to say that real estate is more micro than it's ever been so there's going to be markets where it's a buyer's market and there's going to be markets where it's still a seller's market it all comes down to supply we still have a supply issue in the bulk of the united states it's early january how is this time of year for people who might be on the search for a new home they want to get into a new house new apartment in 2025 i think january is a great time to go shopping and the reason is you have serious sellers you usually see people who are trying out the market to see if they can get the most money in spring so january is a really good time to go out see what's there and see what the serious sellers are expecting you talked about mortgage rates a minute ago that's your second item on the list what are your thoughts for that in 2025 my gut is that we're going to be in that mid-six range going up and down with sentiment that's for conventional mortgage government lord mortgages va and fha are always going to be lower than that but i think you're going to see a fluctuation of up to half a just given whatever's happening with policy so what do you say to those people who are hoping those mortgage rates will fall back down to four and a half to the five point range i say they're going to be waiting a long time and the bottom line is this if you're looking at buying a house get qualified with what rates are now and make sure you can afford it with what rates are now don't count on rates dropping there's no guarantee so you really want to make sure that you can comfortably afford what you're purchasing that's actually really good advice last on your list is loan options what should we expect when it comes to that i'm actually super excited about that so i've been a lender for 18 years and i have to tell you there are more loan options right now than i've seen in my entire career so anything from grants for first-time home buyers to more creative underwriting for self-employed borrowers we've really seen lenders over the last two years bring everything they can to help americans get into homes so i'm super excited about that i love that i love the optimism hopefully that's exactly what rings true in 2025 is there a loan type you would recommend over others considering what you expect the housing market to be doing in the next 12 months there's not a specific loan type i would recommend because it's unique to your individual situation so for veterans i'm always going to say look at your va benefit you know conventional mortgages are great but fha may suit you better so it's down to the unique individual and their financial situation you mentioned a moment ago with the new administration we don't know what to expect yet but how do you think your their policies or the policies will impact real estate oh it's it's impossible to tell right because we're hearing about deregulation we're hearing about tariffs we have everybody guessing how that's going to affect the market but until we see who the people are that actually end up seated in power and what they come up with i think that's where the volatility we're going to be seeing this year is from so jennifer with 2025 how do you think it will fare different than the past few years we've seen when it comes to i think it's going to be the most normal market that we've had in a long time because just a quick history 2020 2021 rates were great horrible for buyers though because the competition was insane writing 30 offers getting denied 22 rates went from three percent to six percent in a year then you had and the sellers still wanted a million dollars for their and then 23 sellers started to understand rates were going up still 24 they started to come down but we had an election so i feel like 25 is a break it's a return to just normal basics i'm hoping for a no drama year thanks for watching go to joinnn.com to find news nation on your television provider 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