The housing market loves to keep us guessing. But when you’re ready, you’re ready — and that matters way more than waiting for a perfect moment.
Whether you’re house hunting right now or just planning ahead, here’s your game plan.
How’s the housing market right now?
The busiest months for buying and selling are behind us, and we’re starting to see the typical seasonal decline in the number of homes for sale.
Buyers who don’t mind moving in the winter can snag a lower price in the off-season. Houses tend to stay on the market longer, and motivated sellers are more likely to make concessions.
Skip ahead to read about:
Weekly average mortgage rates
Mortgage rates went up a little this week.
The interest rate on a 30-year fixed-rate mortgage averaged 6.02% annual percentage rate (APR) for the week ending Jan. 8, up five basis points from last week, according to rates provided to NerdWallet by Zillow. A basis point is one one-hundredth of 1%.
Average weekly mortgage rates
|
Mortgage type |
APR |
|---|---|
|
30-year fixed mortgage |
6.02% |
|
15-year fixed mortgage |
5.44% |
|
5-year adjustable |
6.39% |
Averages are for the week ending Jan. 8, 2026, according to rates provided to NerdWallet by Zillow.
Each mortgage lender sets their own rates and fees. Compare offers from at least three mortgage lenders to get the best deal. Rate shopping can save you thousands of dollars over the life of the loan.
How do mortgage rates affect housing costs?
When mortgage rates are high, your home buying budget doesn’t stretch as far. Let’s say you’re prepared to make a 20% down payment on a $350,000 house. Here’s what your monthly payments would look like at different interest rates:
|
Interest rate |
Monthly principal + interest* |
|---|---|
|
5% |
$1,503 |
|
5.25% |
$1,546 |
|
5.5% |
$1,590 |
|
5.75% |
$1,634 |
|
6% |
$1,679 |
|
6.25% |
$1,724 |
|
6.5% |
$1,770 |
|
6.75% |
$1,816 |
|
7% |
$1,863 |
|
7.25% |
$1,910 |
|
7.5% |
$1,958 |
*For a 30-year fixed-rate mortgage. Does not include homeowners insurance or property taxes.
Inflation and the economy
Is it a bad time to buy a house? From higher grocery prices to a tough job market, headlines about the economy might make you feel rattled. It’s normal to feel worried about making a long-term financial commitment right now. Here’s how to stay grounded:
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🤔 Consider pausing: If your finances feel shaky — for example, you’re worried about job security or paying bills — it’s wise to hold off.
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😌 Stay the course: If your income is steady and your budget says the numbers work, don’t let scary “what if” headlines throw you off track.
The Federal Reserve, the nation’s central bank, indirectly influences interest rates on all loans (including mortgages). On Dec. 10, policymakers lowered the federal funds rate by 25 basis points. We’ll find out the Fed’s next move at its upcoming meeting, Jan. 27-28.
Is it a buyer’s or seller’s market?
Right now: Seller’s market (moderate)
After years of sellers having a strong upper hand, the vibe has shifted to give buyers more leverage. Here are the signs of a more balanced market:
✅ More houses to choose from.
✅ Less competition.
✅ Wiggle room on price (including sellers accepting offers below asking).
✅ Willingness to negotiate on contract terms.
What’s the difference between a buyer’s market and a seller’s market?
Whether we’re in a buyer’s or seller’s market comes down to supply and demand. Available inventory affects who has the upper hand in negotiations.
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📈 Buyer’s market = high inventory. Buyers have lots of choices and can take their time. Price cuts are common. Buyers might ask sellers to cover some costs or fees.
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📉 Seller’s market = low inventory: Buyers have fewer choices. Prices and competition heat up. Expect multiple offers above asking price.
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⚖️ Balanced market = enough homes to go around: Supply and demand are roughly even. This generally happens when the real estate market has about six months’ worth of available inventory.
When a house is listed for sale, it becomes “inventory.” Inventory is measured as a number of months’ supply at the current sales pace. A six-month supply means it would take six months to sell all listed homes, if no new ones came on the market.
Let’s dig into the details using November 2025 data from the National Association of Realtors (NAR).
Inventory: Tapering for the season, but up from last year
Seasonally, inventory tends to decrease in the fall as the traditional busy homebuying and selling season comes to an end.
Currently, there’s a 4.2-month supply of homes for sale. That’s down a bit from 4.4 months’ supply in October, but up from 3.8 months in November 2024.
Lower inventory in the winter means buyers have fewer homes to choose from. But sellers who list in the off-season tend to be pretty motivated, so buyers have a little more leverage.
Home prices: High and still (slowly) climbing
Meanwhile, home prices continue their upward trend — although not as rapidly as in previous months. Nationally, year-over-year home prices have risen every month for more than two years.
The national median price for existing homes sold in November was $409,200, up 1.2% from November 2024, according to the NAR.
Prices grew across threeU.S. regions — Northeast, South and Midwest — and declined in the West.
Here’s a breakdown of median housing prices by region:
-
Midwest: $319,400, up 5.8%
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Northeast: $480,800, up 1.1%
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South: $361,000, up 0.8%
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West: $618,900, down 0.9%
Home sales: Ticking upward
No surprise here: When mortgage rates fall, more people buy houses. Sales of existing homes rose 0.5% from October to November, bucking the trend of home sales tapering after the traditional homebuying season.
November marked the third consecutive month of a rise in existing-home sales, aligning with a dip in mortgage rates. In November, the 30-year fixed rate mortgage averaged 6.15%, nearly the same as October’s 6.13% and down almost 30 basis points from September’s 6.42%.
Competition: Easing up
The November 2025 Realtors Confidence Index, a survey of the NAR’s members, highlights recent trends real estate agents are seeing in their local markets that are easing the competition among buyers. Some shifts to note:
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Bidding wars aren’t the norm. A home listed for sale received an average 2.2 offers in November, nearly the same as 2.1 last month and 2.1 last year. For context: In the era of hot bidding wars in 2021 and 2022, the average was around five offers per home.
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Fewer homes are selling above list price. In November, 18% of homes sold above listing price, about the same as 19% last month and 18% last year.
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Homes are staying on the market longer. Houses stayed on the market for a median 36 days in November, up from 34 days last month and 32 days last year.
Overall, though, demand still outpaces supply. This is hardly a mellow market: Good homes sell quickly, and buyers should still expect competition out there.
Should I buy a house now or wait?
Ultimately, whether it’s a good time to buy comes down to your personal financial readiness. If your credit score needs work or you’re in major debt, consider tackling those goals first. You also need to be emotionally ready for the commitment of owning a house.
Here are some green flags that it’s a good time to buy.
✅ Stability: You have steady income and employment, and you’re ready to stay in one place for several years.
✅ Lifestyle fit: For first-time buyers, you’re up for the responsibility of paying for maintenance and repairs. For repeat buyers, your current home no longer meets your needs: You’re ready for more space, a new neighborhood or to downsize.
✅ Savings: You’ll need money for a down payment and closing costs, as well as for moving costs and other expenses.
✅ Low debt: Your debt-to-income ratio (DTI) shows how much of your monthly income goes toward paying debt (like student loans, car payments or credit cards). The lower your DTI, the better your mortgage rates and terms. A DTI of 36% or below is most attractive to lenders.
✅ Good credit score: Borrowers with credit scores of 740 and above get the best mortgage rates and terms. It’s possible to qualify with a score in the 600s, but your options are limited.
The takeaway: If you’re ready to buy, jump in now
Don’t try to time the market perfectly. National trends can be unpredictable, but if you’re in a good spot, that’s what matters most. Do you have a stable income, solid savings and a desire to settle down? You can find a way to make it work.
Source: nerdwallet.com ~ By: Abby Badach Doyle ~ Image: Canva Pro