Boston’s median single-family price just crossed $1M. Mortgage rates? Still in the mid-to-high 6% range—making affordability a real hurdle. But change is coming.
The Forecast
Economists expect a slow, steady drop in rates over the next 12–18 months:
-
NAR: ~6.7% in 2025 → 6.0% by 2026 (potentially adding 5.5M new buyers nationwide)
-
Realtor.com: 6.7% → 6.4% by late 2025
-
Fannie Mae/MBA: 6.6% or lower by the end of 2025
-
Zillow: Mid-6% range
Lower rates = more buying power—but also more competition when they arrive.
What It Means for Your Wallet
Example: Median Boston home at $990K, 20% down.
-
At 6.8%, monthly PITI: ~$6,196
-
At 6.0%, monthly PITI: ~$5,789 (≈$407 less per month / ~$5K annually)
That $407/month savings could add ~$68K to your buying power or save ~$146K in interest over 30 years.
Market Reality Right Now
-
Inventory is up: +42.5% single-family, +36.9% condos year-over-year
-
Buyer leverage is higher: More choice, less frenzy, more room to negotiate
-
Condo market: More balanced than single-family, with some price softness
Buy Now or Wait?
Buying now: More selection, more negotiating power, option to refinance later.
Waiting: Possible lower rate—but higher prices and heavier competition when pent-up demand hits.
Seller Note
With more inventory, buyers are choosier. Pricing right and presenting well is no longer optional.
Bottom Line: We’re in a rare window—more homes to choose from, less competition, and a good chance to refinance later. Whether you buy now or wait, know your numbers and have a strategy before the market shifts again.
📩 Let’s talk about timing your next move in Boston’s changing market.