Financial Considerations for Real Estate Buyers

Current Mortgage Rates and Affordability

• As of April 25, 2025, the average 30-year fixed mortgage rate is approximately 6.79%, a slight decrease from earlier in the year.
• While rates have stabilized, they remain significantly higher than the pandemic-era lows, impacting monthly payments and overall affordability

Home Prices and Market Trends

• Zillow forecasts a nearly 2% decline in U.S. home values by the end of 2025, marking the most significant drop since 2012.
• Despite this, certain regions, particularly in the Northeast, may continue to see price increases.

Income Requirements and Budgeting

• With higher mortgage rates and home prices, buyers need to assess their financial readiness carefully.
• Creating a detailed budget that includes down payment, closing costs, property taxes, and insurance is crucial.

Long-Term Investment Horizon

Climate Risk and Insurance Costs

• Rising climate-related risks are leading to increased insurance premiums, particularly in vulnerable areas like Florida.
• Buyers should factor in these potential costs when evaluating properties.