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Homebuyers who are summer shopping for a home are seeing more inventory on the market, but timing can mean the difference between saving thousands of dollars—or not.
Dallas real estate broker Tezerae Herbert, tells Realtor.com® that “a small change in the rate can make a big difference over time.”
Mortgage interest rates continue to remain close to 7%, but in the past few weeks it has dipped a few times, which is good news for buyers.
“On a 30-year loan, a 0.01% or 0.5% change can add up to thousands or even tens of thousands of dollars in interest,” explains Herbert.
She shared with her followers an Instagram and Facebook her insights on interest rate changes, explaining that “every 1% change in the interest rate affects your buying power by 10%.”
Herbert put it into perspective, noting that “if you qualify for a $400,000 home at a 6% rate, and rates jump to 7%, your budget may drop to around $360,000 to keep the same monthly payment.”
“Waiting for the perfect rate can backfire if prices continue to rise,” says Herbert. “Buyers who can afford a payment now often benefit more from starting to build equity sooner.”
The current national median list price for homes was $440,000, about flat since last year, while the price per square foot rose 0.6%, consistent with very modest home value growth, according to the Realtor.com May 2025 Monthly Housing Market Trends Report.
The inventory of homes for sale also rose to 31.5% year over year, which is the 19th straight month of year-over-year inventory growth.
Market trends
Herbert stops short of saying we’re in a buyer’s market, but rather describes it as more of a “balanced market” adding, “this varies by location.”
“It is not fully a buyer’s market yet, but well-prepared buyers do have more leverage now than they did during peak competition,” notes Herbert.
In May, pending home sales, which account for homes under contract, fell 2.5% compared to last year. Homes spent a median of 51 days on the market—that’s six more days than a year ago, according to Realtor.com data.
Price cuts were also reported on 19.1% of listings—marking the highest share for any May since July 2016.
“Inventory is still tight, but sellers are showing more flexibility with pricing and negotiations,” says Herbert.
Mortgage rates
Mortgage rates are calculated by various factors in the economy. The length of your loan and the type of loan (including the 15-year fixed, 30-year fixed, 5/1 ARM, to name a few) will also factor into the mortgage rate you qualify for.
“While today’s rates have dipped slightly, they are still considered high compared to the extremely low rates we saw during the pandemic,” says Herbert. “But when you look at the bigger picture, current rates are closer to the historical average.”
“Buyers in past decades often saw 6% to 7% as normal. What matters most is whether the monthly payment fits your long-term financial goals.”
With the Consumer Confidence Index reflecting a softening in consumer sentiment, households are concerned over the economic outlook, explains Hannah Jones, senior economic research analyst at Realtor.com.
“Plans to purchase a home fell, suggesting that homebuyers might be hesitant to make a large financial commitment,” says Jones.