August 2025 Housing Market Update: Rates Fall, Price Corrections Spread

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Business, Investing

4.8 • 16.5K Ratings

🗓️ 15 August 2025

⏱️ 37 minutes

🔗️ Recording | iTunes | RSS

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Summary

Mortgage rates just hit their lowest point in 2025. The housing market correction spreads to nearly 50% of the country. Sellers are giving up as new listings begin to retreat. Is this just a normal correction or the signs of a housing market crash? Should you take the chance and buy now with lower rates and desperate sellers, or could this just be the start of a downward spiral? We’re giving the data on it all in this August 2025 housing market update! Interest rates got some serious relief at the start of the month. We’re now around 0.5% lower than we were at the beginning of the year, bringing some much-needed affordability to the housing market. The cause? New and revised jobs reports are getting investors worried about the economy, and increasing our likelihood of a recession coming our way. But with less labor stability, will homeowners be forced to sell? And will we see foreclosures begin to rise? Sellers are starting to realize what we all already know: it’s a buyer’s market. Would you sell your home when buyers have all the leverage? Probably not. And most sellers are feeling the same, choosing to hold onto their houses instead of putting them on the market. What’s the chance this locks up inventory yet again? Is this the tipping point for the housing market and a perfect window to buy? Dave’s giving his take today. In This Episode We Cover Mortgage rate updates: why they’re falling and whether this downward trend will continue Why we could be entering a nationwide housing correction as price declines deepen Foreclosure and delinquency updates: will homeowners be forced to sell soon? The growing buyer’s market and why would-be sellers have decided to wait it out Is now the perfect time to invest with low rates and high buyer power? And So Much More Check out more resources from this show on ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠BiggerPockets.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ and ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://www.biggerpockets.com/blog/real-estate-1161 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠[email protected]⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Mortgage rates have dropped to their lowest level of 2025.
0:04.0	Meanwhile, 50% of markets are seeing price declines, but affordability is starting to increase.
0:10.6	This could mean a buying opportunity or the start of a deeper correction.
0:15.1	It's a rapidly shifting housing market right now, filled with opportunity but also uncertainty.
0:22.1	So today I'm going to help you make sense of it all. This is our August 2025 housing market update.
0:31.5	Hey, everyone. Welcome to the Bigger Pockets podcast. I'm Dave Meyer, housing analysts, investor strategist, and today I'm bringing
0:40.0	you our monthly housing market update. And oh, man, we really need it this month because there is
0:46.5	so much going on from rising inventory to new delinquency and foreclosure data to new price forecasts.
0:55.5	We've got a lot to get into because all of this stuff really does impact your decision-making as an investor,
1:01.8	from setting your strategy to building a buy box or deciding how you want to make an offer.
1:07.7	All of that depends on having knowledge of current market conditions. So let's waste
1:12.6	no more time and get into our housing market update. First up, we've got to talk about mortgage
1:18.0	rates, which have now dropped to our lowest level of 2025. As of this recording, mortgage rates
1:25.3	are currently sitting for prime rate 30-year fixed rate mortgage around 6.5%, 6.6%.
1:31.6	Now, I'm sure that most people aren't feeling this huge sense of relief seeing mortgage rates at 6.5 or 6.6%.
1:40.6	Probably most people were expecting or at least hoping for bigger rate relief by this time in 2025.
1:48.6	But it is significant because if you remember back to January, rates were actually at 7.1, 7.2
1:55.1	percent.
1:55.5	So we actually are more than half a percentage point down, which does mean hundreds of dollars per month on the
2:02.4	average mortgage. So that is pretty good. And then second of all, I'm not surprised by this.
2:08.2	If you've been listening to the show, my mortgage rate forecasts have been that in 2025,
2:13.4	mortgage rates were going to stay in the mid sixes. And so we're getting at least what I was
	...

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