• Major fluctuations are giving way to stability.
• Home prices continue to creep up, but much more slowly than during the COVID-19 pandemic. 
• Housing inventory is still tight, but 2024 showed notable growth. 
• Industry experts predict interest rates will hold steady in 2025. 
• Homeownership is still an excellent way to build wealth—especially compared to renting.

Following big changes in the early 2020s to housing market drivers including interest rates, inventory, and average home prices, many of these dynamics have reached and maintained relative stability. Interest rates for 30-year fixed-rate mortgages, for example, have hovered within the same 2-point range since September 2022.¹ 

While median sale prices have inched up since 2023, they grew much more slowly than from 2020 to 2022.² And while housing inventory hasn’t changed much, one report showed year-over-year growth for nearly all of 2024.³

Despite market changes, owning a home is still one of the best ways to build wealth. One report showed American homeowners with mortgages gained $425 billion in equity year-over-year from Q3 2023 to the same period in 2024.⁴ Other research by the Aspen Institute found the median net worth of homeowners to be $396,500 in 2022, compared to just $10,400 for renters.⁵
 

While many buyers may have hoped for more favorable shifts, experts suggest significant change is unlikely this year. Keeping in mind that future trends are impossible to know for sure, one chief economist of the National Association of REALTORS® (NAR) predicted mortgage rates will remain stable through 2026. The economist also predicted relatively small increases in home prices (2% year-over-year) in each of the next two years.⁶ 

Despite some promising signs of improvement, it’s difficult to predict when it will truly be a “buyer’s market” again. When considering that the alternative is paying rent, 100% of which goes to a landlord and prevents the opportunity to build home equity, waiting for a particular interest rate or home price might not be in an individual’s best long-term interest.

For some would-be buyers who already own a home, these changes may not be promising enough to draw them into the market. But that doesn’t mean they’re without options. Those choosing to stay put for the time being can start a renovation project to improve what they already have.

From remodels to home additions, many homeowners can achieve their dream homes without having to house hunt or move. With custom renovations, they can make their current homes uniquely their own. Others may want to sidestep the turn-key market and purchase a fixer-upper.

Renovation loans are designed to finance this type of project and could:

• Save time and money. Whether renovating your current home or looking for a new one, you can purchase or refinance while securing renovation financing in a single loan. One loan means one application, one closing, and one set of closing costs. 
• Offer flexible options and wide eligibility. Some renovation loans have low down payment options, flexible credit score requirements, and eligibility on a wide range of property types.
• Cover a range of projects and improvements. Tackle renovation projects large and small with loan funding for roofing, plumbing, flooring, landscaping work, and more.

Wintrust Mortgage offers lending in all 50 states with a wide selection of options—many of which are exclusive to us or hard to find elsewhere—to help buyers find the perfect solutions based on their needs. Many loans also include down payment assistance⁷ and other incentives for qualifying homebuyers, including grants and tax credits.

One such option is the Wintrust Mortgage HomeReady® First grant,⁸ which offers up to $6,000 in financial assistance toward a down payment or closing costs to eligible homebuyers with no repayment required. Plus, with no property location restrictions and flexible income and credit qualifications, this could be just the thing to open new doors for homebuyers in the current market.

A Wintrust Mortgage loan originator can help you find the best loan to meet your goals, and advise you on programs, credits, and grants you may qualify for.

No matter how the market looks, it’s important—especially for first-time buyers—to prepare for the homebuying journey. If conditions suddenly become more favorable, planning puts you ahead of the pack as other buyers enter a more competitive market.

The best way to get started is by becoming a PremierBuyer™.⁹ This offers a better idea of what you can afford and saves time while house hunting. Plus, having PremierBuyer™ status makes you more attractive to sellers by proving you’re both serious about a prospective purchase and more likely to be able to follow through. Wintrust Mortgage offers an online application to become a PremierBuyer™ that’s fast, easy, and secure. Click below to begin.