Is Now a Good Time to Buy a House? What to Know in September 2025

Whether now is the best time to buy a house really depends on your own finances. How much do you have saved up for a down payment? What’s your credit score? Do you have a stable job with a steady income? Will you need to move to a new city in the near future?

But it’s also important to think about macroeconomic trends, such as mortgage interest rates, home prices, rent inflation, and the overall direction of the economy. So under that lens, is now a good time to buy a house? It’s still hard to say, but I’ll start with this:

If you’re waiting for housing prices or rates to drop dramatically, you could be waiting a long time. Renters who can afford to buy now likely should; building equity is one of the best things you can do for your finances.

Table of Contents

1. Is buying a house this month a good idea?
   1. Mortgage rates
   2. Housing prices
   3. Rent prices
2. Should I wait until next year to buy?
3. How to get a lower mortgage rate
4. Does the state you live in affect when you should buy a house?

Is buying a house this month a good idea?

While buying a house in the coming months or year could be a good idea, what about right now? If you go put an offer on your dream home today, would that be the best move?

My take: Cautiously, yes, buying a house this month could be a smart move. Here’s why:

Mortgage rates

While rates are still double what they were when markets tanked at the start of the COVID-19 pandemic, they have shown signs of slowing and actually decreasing.

As of September 18, 2025, the average mortgage rate was 6.26%, according to the Federal Reserve Bank of St. Louis. That’s much lower than the post-pandemic high of 7.76%.

Predicting when interest rates will go down is challenging, and it depends on several factors, including:

• The 10-year Treasury yield
• The federal funds rate
• The state of financial markets
• Inflation rates

The hard truth: Industry experts at Freddie Mac, Fannie Mae, and the National Association of Home Builders don’t believe rates will drop below 6% even by the end of 2026. So if you’re not sure about buying this month because you think rates will plunge in the near future, you’re waiting around for nothing.

This month’s rates should suffice for now, and you can always buy down your rate (or refinance later) if you want to lock in a lower rate at closing.

Housing prices

In the last few years, it’s been a seller’s market. With limited availability, sellers have been able to command higher prices, but the tide is slowly changing.

According to The Mortgage Reports, August 2025 saw nearly 21% more active home listings than the same month the year prior. An increase in supply means sellers can no longer command record-breaking high prices for their homes.

The Federal Reserve Bank of St. Louis’s data on median home prices proves this theory. In the fourth quarter of 2022, the market reached a record high with a median home price of $442,600. In the second quarter of 2025, median home prices dropped to $410,800.

Median home prices, Q2 (2020–2025)
Q2 2020	$317,100
Q2 2021	$367,800
Q2 2022	$437,700
Q2 2023	$418,500
Q2 2024	$414,500
Q2 2025	$410,800

As mortgage rates slowly decrease in the coming years, however, demand for homes will increase, and prices may go up again alongside demand. Thus, waiting for rates to drop further is a double-edged sword. House prices could skyrocket in response.

Rent prices

If you’re already a homeowner considering selling your house and buying a new one, you can skip this section. But if you’re currently renting an apartment or home from someone else, we need to discuss another major factor that should weigh heavily on your decision.

According to a September 2025 report from Redfin, rents jumped 2.6% year-over-year in August, marking the biggest increase since December 2022. Right now, the median rent in the United States is $1,790.

For context, a person making $15 an hour at 40 hours a week, not accounting for any unpaid vacation, holidays, or sick time, makes $2,600 a month before taxes. The median rent consumes nearly 70% of that person’s pretax income.

Juggling rent prices that high can make saving for a down payment almost impossible for many Americans. But it also means they’re not building equity. Sure, homeownership isn’t as glamorous as financial experts would make you think: You need to sink money into repairs and budget for those pesky property taxes.

But at the end of the day, you are still building equity when you finance a home instead of rent, and you can pocket that equity when you sell the house or access it through a home equity loan or home equity line of credit (HELOC). So if you currently rent but can afford to buy, now is a good time to make the jump.

Should I wait until next year to buy a house?

Waiting until next year to buy a house could be wise if you need more time to improve your credit score and save for a down payment. But if you’re only waiting because you want rates to drop, I’d rethink that strategy. Because mortgage rates are dropping at a snail’s pace, you aren’t likely to get much of a better rate in 2026, and you’re gambling with housing prices, which could start to increase again.

If you’re deciding between buying now or in a year, my best advice is to ignore the market at large; it likely won’t be dramatically different in the next 12 months (barring any major unforeseen economic events, which are admittedly more possible in today’s political climate).

Instead, think about your own finances:

• Can you save more money for a better down payment a year from now?
• Are you “throwing away” money on rent currently?
• Do you expect your income to increase soon, which would expand your buying power?
• Is now a good time to sell your current home, or do you need to do some repair work first?
• Could you work on improving your credit score over the next few months to lock in a lower rate or get approved for a larger loan?

How to get a lower mortgage rate

As we’ve seen, mortgage rates are on a sluggish decline. When determining if now is a good time to buy a house despite high interest rates, keep in mind there are ways to get a lower mortgage rate, now or in the future.

Get multiple quotes

First and foremost, don’t only explore the lender your real estate agent recommends. Take the time to get multiple quotes from several lenders. Our top pick is a SoFi mortgage because of its easy online process, 45-day rate lock, and Close-on-Time Guarantee. That said, do your due diligence and explore multiple options.

Buy down your rate

Regardless of the current market, you can get a lower interest rate by purchasing mortgage points (also called discount points). These will cost a significant chunk of change at closing but could save you money in the long run.

When buying a newly built home, the homebuilder might even buy down your rate as part of the deal.

Get a 15-year mortgage

A 15-year mortgage generally has lower interest rates than a more traditional 30-year loan.

That said, 15-year mortgages can be tough because monthly payments are much higher. However, if you buy a home well below your means, you may be able to handle the larger monthly payment.

Make a larger down payment

Making a larger down payment shows lenders you are financially responsible, and lenders might reward that with a lower rate. Ask your lender whether the size of your down payment affects the rate.

Plus, if you put down 20% or more, you may be able to avoid private mortgage insurance and save more each month.

Refinance later

If you find your dream home now, and the price is great, don’t let high mortgage rates stop you from making an offer.

Your repayment process lasts decades; chances are good rates will drop to a more reasonable amount in that time frame. When they do, research the best mortgage refinance companies and see whether you can secure a better rate.

Does the state you live in affect when you should buy a house?

Where you live can also influence whether it’s a good time to buy a house. While rates are consistent across the country, housing prices are not.

For instance, citing data from the latest S&P Cotality Case-Shiller Index, Newsweek reported that housing prices are significantly on the rise in the Midwest and Northeast, while they’ve stagnated, or are even dropping, in West Coast states and Florida.

Housing prices in major metro areas like New York and Chicago continue to rise, while other large cities, including Denver, Miami, Dallas, San Francisco, San Diego, and Phoenix, have seen housing prices drop.