Should You Buy a House With March 2025 Interest Rates?

Or should you wait and hope the housing market stops playing hard to get?  As the flowers bloom and pollen attacks your sinuses this March, you might be wondering if now is the right time to buy a home. Mortgage rates, home prices, and economic policies have all been on a wild ride—kind of like your cousin who swore he was getting his life together but is still “finding himself” in his 40s. So, let’s break it down and see if buying a house right now makes sense for you.

Where Are Mortgage Rates Now?

The good news? Interest rates have finally cooled off from their 2023 peak, when they soared past 8% and had buyers questioning their life choices. As of March 2025, the average 30-year fixed mortgage rate is sitting around 6.65%—not the golden 3% days of 2021, but hey, better than the financial horror show of 2023.

But what does this mean for your monthly payment? A lower rate means more affordability, but with home prices still holding steady, you’ll want to do some number crunching before jumping in.

What’s the Economy Saying?

The Federal Reserve seems to be chilling for now, keeping rates steady as long as inflation doesn’t start acting up again. Meanwhile, GDP growth has been solid, unemployment is low, and wages are creeping up. Sounds promising, right? Well, there’s a catch: new tariffs on imports like lumber and appliances are driving up construction costs—so if you’re planning to build, prepare for some sticker shock.

Oh, and did I mention we still have a housing shortage? We’re about 4 million homes short nationwide, which means demand is outpacing supply, keeping home prices on the high side.

So… Should You Buy Now or Wait?

Here’s the deal:

• Buy Now If… You’ve got a steady job, a solid down payment, and you find a house you love. With rates lower than last year and home prices unlikely to drop dramatically, waiting might not save you much in the long run. Plus, date the rate, marry the home—you can always refinance later if rates dip.
• Wait If… You’re barely scraping together a down payment, or the idea of a high monthly mortgage makes you break out in a cold sweat. Spring could bring more listings (yay, options!), and if rates hold steady, you might get a better deal.

Final Thoughts

Look, nobody has a crystal ball (except that one aunt who swears by astrology). But if you’re financially ready, locking in a home now could be a smart move. If not, keep saving, stay informed, and be ready to jump when the right opportunity comes knocking.

Click HERE to see if you qualify for a free review of your debt-to-income (DTI) ratio—because buying a house should be exciting, not stressful!