Faith & Finance - Is 2025 the Right Time to Buy or Sell A House? with Dale Vermillion

The real estate market may be in its winter slump, but spring is just around the corner—only five weeks away!

Higher interest rates have kept many home buyers and sellers off the sidelines in recent years. But could a change be on the horizon? Today, mortgage expert Dale Vermillion joins us with a market forecast and some practical advice on how to move forward.

Dale Vermillion is the author of Navigating the Mortgage Maze: The Simple Truth About Financing Your Home. This book covers everything you need to know about securing a mortgage—all from a biblical perspective.

Is the Housing Market About to Shift?

For the past few years, many homeowners have stayed put due to high interest rates, a phenomenon known as the lock-in effect. However, recent data suggests a shift might be on the horizon.

• Existing home sales rose by 6.1% in November 2024, signaling a potential increase in market activity.
   
• While December and January are traditionally slow, spring is expected to bring renewed momentum as buyers become more eager to move.
   
• Consumer confidence is growing, and as patience wears thin, many are deciding to buy now and refinance later.

Should Buyers Accept Current Interest Rates?

Many potential buyers have been waiting for rates to drop before making a move. But sometimes, waiting is no longer an option. Life goes on, and people need to relocate for jobs, family, or other personal reasons.

That said, budgeting wisely is key. Before purchasing a home, we recommend:

• Assessing what you can truly afford
   
• Creating a solid budget to plan for mortgage payments
   
• Considering the long-term potential to refinance in a few years

While mortgage rates remain higher than the record lows of a few years ago, waiting indefinitely for the “perfect” rate may mean missing out on opportunities.

What to Expect From Interest Rates in 2025

Many homebuyers have been banking on rate cuts to ease affordability, but will they actually happen?

• Only one or two rate cuts are expected in 2025, and even those are not guaranteed.
   
• The biggest factor influencing mortgage rates is inflation, which is tied to federal deficit control.
   
• Unlike previous periods of low mortgage rates, the government is unlikely to buy trillions in mortgage-backed securities to artificially lower rates.

Bottom line: Mortgage rates are like