With mortgage rates shifting, inventory remaining tight, and plenty of mixed messages in the headlines, many potential homebuyers are wondering if now is the right time to make a move or if they’d be better off waiting.
The truth is, there’s no one-size-fits-all answer. Today’s market has its challenges, but it also has opportunities. The right choice often comes from your financial readiness and lifestyle goals.
In this blog, we’ll explain what’s happening with mortgage rates, how other market conditions, home prices, and inventory are shifting, and the pros and cons of buying now versus waiting.
What’s Going on with Mortgage Rates Right Now?
According to Freddie Mac's latest Primary Mortgage Market Survey, the average 30-year fixed mortgage rate in the U.S. stood at 6.76% as of early May 2025. The 15-year fixed rate is 5.89%.
These rates have remained relatively stable in recent weeks, offering a slight reprieve from the volatility experienced in 2024.
Experts anticipate that mortgage rates will gradually decline over the remainder of 2025. Fannie Mae projects that the 30-year fixed rate will average around 6.3% by the end of the year, with a further dip to 6.2% in 2026.
Similarly, the National Association of Realtors forecasts an average rate of 6.4% for 2025, decreasing to 6.1% in 2026.
It's important to note that these projections are subject to change based on various economic factors, including inflation trends, Federal Reserve policies, and global economic developments. A gradual rate decrease is expected, but significant fluctuations can still occur, making it challenging to predict the exact timing and extent of rate changes.
For potential homebuyers, waiting for significantly lower rates might not yield substantial savings and could result in missed opportunities in the current market. It's crucial to consider personal financial readiness and consult with professionals to make informed decisions.
What Other Market Factors Should You Consider?
Beyond mortgage rates, several key factors influence the decision to buy a home now or wait. Here's a look at current trends in the Grand Rapids housing market:
Home Prices: Gradual Increase
As of April 2025, the median home sold price in Grand Rapids is approximately $310,440, reflecting a 3.4% increase from the previous year. This steady appreciation suggests a resilient market, with home values rising moderately.
Inventory: Slight Uptick, Still Limited
The housing inventory in Grand Rapids has seen a modest increase, with 979 homes listed for sale in April 2025, up from 879 in March. Despite this uptick, the market remains tight, with demand outpacing supply.
Buyer Competition: Persistent but Evolving
Competition among buyers remains strong. In April 2025, 52.5% of homes sold above their asking price, indicating ongoing bidding wars. However, the average days on the market increased to 21 days, up from 16 days the previous year. This suggests a slight easing in the market's intensity.
Are There Risks of Waiting Too Long To Buy?
It is tempting to try to “wait out” the market in hopes of scoring a better rate or a lower price, but timing the market perfectly is notoriously tricky.
While mortgage rates could drop later this year, home prices could continue to climb. In places like Grand Rapids and along the lakeshore, demand is still outpacing supply, which puts upward pressure on prices.
If rates do dip noticeably, many sidelined buyers will likely jump back into the market, increasing competition and possibly sparking bidding wars again.
In other words, waiting might save you a little on interest, but:
- You could end up paying more for the house itself.
- You might lose negotiating power if demand spikes.
- You risk missing out on a home that fits your needs right now.
For many buyers, the cost of waiting can quietly add up. That’s why it’s so important to base your decision not just on rates, but on your personal timeline, budget, and long-term goals.
What’s The Case for Buying Now?
If you’re financially ready, buying a home now could be smart, even with rates slightly higher than recent historic lows.
1. Today’s Prices May Be Tomorrow’s Bargain
Home values in West Michigan and beyond are steadily climbing. Locking in a home at today’s price point could mean building equity faster, especially if the market continues to appreciate through the end of 2025.
2. You Can Always Refinance Later
One of the most important things to remember is that you’re not locked into your rate forever. If interest rates decline in the future, you may be able to refinance to take advantage of the lower rate without competing for a new home or risking rising prices.
3. Sellers May Be More Flexible
With some listings sitting a little longer, sellers may be more open to negotiations on price, repairs, or closing costs. That flexibility can give buyers more room to get a fair deal — something that’s harder to come by in ultra-competitive markets.
In short, if your finances and lifestyle align with buying now, waiting solely for a rate drop might not be worth the risk. Acting now could put you in a stronger long-term position.
Should I Buy a Home Now or Wait? It All Comes Down to You
The right time to buy a house isn’t just about mortgage rates or market trends — it’s about you.
Trying to perfectly time the market often leads to more stress than success. What matters most is whether you’re financially prepared and if buying a home aligns with your current life stage and goals.
Ask yourself:
- Do I have a stable income?
Consistent income is key to qualifying for a mortgage and comfortably managing monthly payments. - Is my credit score in good shape?
A higher credit score can help you secure better loan terms and a lower interest rate, even in a higher-rate environment. - Do I have enough saved for a down payment and closing costs?
Having funds set aside (ideally beyond the bare minimum) can make the buying process smoother and less stressful.
Beyond finances, don’t forget the lifestyle piece. Are you relocating for work? Hoping to put down roots? Expanding your family? These are all valid reasons to move forward, regardless of what the market is doing.
When You’re Ready To Buy, We’re Here to Help
Whether you’re eager to move or still on the fence, proper guidance can make all the difference. Our experienced agents at BlueWest Properties know the West Michigan market inside and out — and we’re here to help you make a decision that fits your goals.
Contact us today to discuss your options, whether you’re ready to buy or just starting to explore what’s next!