In the past week, we’ve seen some much-needed movement in the housing market—interest rates have started to dip, giving homebuyers a rare window of opportunity.
At the same time, there are economic signals that could lead to higher home prices in the near future, particularly due to tariffs on key goods. If you’re thinking about buying, here’s why the next few months may be the most affordable moment for a while.
1. Mortgage Rates Just Dropped
After sitting at multi-decade highs through much of 2024, mortgage rates saw a notable drop in early April 2025. According to Mortgage News Daily, the average 30-year fixed rate fell to its lowest level in months.
Even a small dip in rates can make a big difference in your monthly payment—and your purchasing power. For example, dropping from 7.25% to 6.75% could save hundreds each month or increase your budget by tens of thousands.
2. Tariffs Could Push Prices Higher
At the same time, recent trade policy developments could lead to increased prices on materials like lumber, steel, and appliances. These tariffs are already affecting construction costs, which often trickle down into home prices, especially in new construction.
Higher material costs = higher builder prices = less affordability in the near future.
[Source: https://www.reuters.com/world/us/us-set-200-china-tariffs-2025-report-says-2024-03-28/]
3. Supply Is Still Tight
Inventory remains low in many markets, and while new listings are starting to trickle in for spring, we’re not seeing the kind of supply surge that would bring prices down. If anything, lower rates are starting to bring more buyers back into the market, which could increase competition.
4. Waiting Could Mean Paying More
Unless you plan to buy 6 to 12 months from now—and you’re okay with potentially higher prices and more competition—buying now may be your best shot at locking in a lower rate and avoiding future price hikes.
Even if rates continue to drop slightly, home prices may rise fast enough to offset any savings. The “wait and see” strategy might mean spending more overall.
Sources:
Mortgage News Daily – Rate Update:
https://www.mortgagenewsdaily.com/mortgage-ratesReuters – U.S. Tariff Policy Update:
https://www.reuters.com/world/us/us-set-200-china-tariffs-2025-report-says-2024-03-28/