Current Home Loan Interest Rates | Why Buying a Home in 2025 Makes Sense

Published: May 09, 2025

Current Home Loan Interest Rates | Why Buying a Home in 2025 Makes Sense

The housing market in 2025 continues to evolve, presenting new opportunities for potential buyers despite ongoing concerns about interest rates. While the current 30-year fixed mortgage rates hover around 6.49% to 6.69% (per U.S. Bank), many experts agree that focusing exclusively on interest rates may cause buyers to miss a more valuable opportunity—buying at today’s home prices before they rise even further.

At UNITS® Moving and Portable Storage, we’re in the unique position of serving thousands of homeowners and homebuyers every year across the United States. From local moves to cross-country relocations, our team sees firsthand how shifting market trends are influencing buying decisions. If you’re considering making a move this year, here’s what you need to know.

Current Home Loan Interest Rates: Contextualizing the Numbers

As of May 9, 2025, the current home loan interest rate for an average 30-year fixed mortgage sits between 6.49% and 6.669%, according to U.S. Bank. While these current mortgage rates are considerably higher than the historically low rates seen during the pandemic-era housing surge, they remain moderate in the broader context of U.S. real estate history. In fact, mortgage rates have averaged over 7% across multiple decades and only dropped below 4% for a short period between 2020 and early 2022.

Rather than waiting for an uncertain drop in current mortgage rates, many financial experts are advising buyers to focus on affordability, location, and long-term goals. With market volatility being a constant in real estate, locking in a home that meets your lifestyle needs and budget should take precedence over rate-chasing.

It’s also important to remember: that home loan interest rates are temporary—home prices are permanent.

Home Inventory is on the Rise: A Shift Towards a Buyer’s Market

One of the most encouraging developments for buyers in 2025 is the increase in housing inventory across many U.S. markets. According to ResiClub Analytics, active housing inventory is up over 30% year-over-year, giving buyers significantly more options than in the ultra-competitive environment of the last few years.

What does this mean for buyers?

More negotiating power:

Sellers are more willing to negotiate on price, closing costs, and repairs.

Less urgency, smarter decisions:

Buyers can make more thoughtful decisions without facing immediate bidding wars.

Improved availability:

New construction is ramping up in many areas, adding to the available housing supply, particularly in high-growth regions like the Southeast and Midwest. In essence, 2025 is offering buyers a rare balance—greater choice, more reasonable price appreciation, and less pressure to make rushed decisions.

The Case for Buying Now and Refinancing Later

While higher home loan interest rates might seem daunting, focusing solely on them could mean missing out on favorable home prices and long-term financial advantages. Mortgage rates are just one part of the equation—what truly matters is the total cost of the home over time. Home values are projected to continue rising, albeit at a slower pace, with an average growth of 2% expected in 2025, according to forecasts from Bankrate and Axios.

Even a small increase in home prices—say 2% annually—can add tens of thousands of dollars to your total purchase price over time. Buying now not only helps you avoid paying more in the future, it also allows you to start building equity immediately. That’s equity you can leverage later if needed—for home improvements, education, or even future investments.

And when home loan interest rates eventually fall—as many analysts predict could happen in 2026—homeowners will have the option to refinance their loan at a lower rate, potentially saving hundreds of dollars per month. This strategy—“marry the house, date the rate”—has become a popular and practical approach among today’s real estate professionals.

By purchasing a home now, buyers can lock in current prices and potentially refinance their mortgage when rates decline in the future.Bankrate+1Axios+1

UNITS Moving and Portable Storage: Insights from the Frontlines

At UNITS® Moving and Portable Storage, we’re more than just a moving company—we’re a trusted partner in life transitions. With 77 franchise locations across the U.S. and thousands of moves completed each month, our teams are on the front lines of what’s happening in real estate.

Here’s what UNITS Moving and Portable Storage sees in 2025:

Increased relocation to secondary markets:

• Buyers are moving to less expensive metro areas where home prices are more affordable and quality of life remains high.

A Growing Trend of Multigenerational Living:

• Families are buying larger homes to accommodate extended relatives, driving demand for more square footage and storage solutions.

More Demand for Flexible Moving and Portable Storage Options:

• Many buyers are timing their moves strategically, using portable storage containers to bridge gaps between closings and renovations.

Our on-the-ground experience gives us a nationwide perspective on how buyers are responding to market trends—and we’re here to support each and everyone with dependable, flexible storage and moving solutions.

Seizing the Opportunity

Yes, current home loan interest rates are higher than they were three years ago—but they’re only one part of a much larger picture. As home prices continue to trend upward and inventory begins to open up, now may be one of the most strategic times to buy before competition returns in full force.

If you find the right home at the right price, don’t let current home loan interest rates stop you. Buy smart today, build equity over time, and refinance when rates make sense. This long-term approach could help you save more—and stress less—in the years to come.

Let UNITS Make Your Next Move Easy

Whether you’re a first-time homebuyer or a seasoned mover, UNITS® Moving and Portable Storage is here to help. Our weather-resistant, secure portable containers and a nationwide network of locally owned franchises give you the freedom to move on your terms—when you’re ready, where you’re ready.

Need help coordinating your move? Reach out to your local UNITS® team today and experience the difference that comes with a partner who truly understands the housing market from coast to coast.