Latest Research on Interest Rates and Housing Inventory

30-Year Conventional and FHA Mortgage Rates

Conventional 30-year mortgage rates have declined significantly, with current national averages ranging from 6.53% to 6.66% as of August 13, 2025.

FHA 30-year mortgage rates are even more attractive, standing at 6.11% to 6.14% for a fixed rate as of August 12-13, 2025. Mortgage News Daily

This represents a notable dip compared to prior months and years, substantiating the trend toward more affordable borrowing for new homebuyers.

Housing Inventory Surge: Is It a Buyer's Market?

Inventory Increase

Active home listings have surged sharply, with national inventories up 24.8% to 28.9% annually according to the latest reports.

• Realtor.com's Housing Report confirms a 24.8% jump in listings in July 2025 compared to the same month last year
• The overall number of homes for sale continues on a strong upward trajectory—there were more than 1 million homes for sale for the seventh consecutive week, the highest level since December 2019

Market Impact

Growing inventory has led to slower price growth and an increase in price reductions, with one in five sellers slashing prices.

• The average time on market has increased, and buyers are now enjoying greater negotiation power
• While overall inventory is still below pre-pandemic levels in some regions, conditions in major metros—especially the South—now exceed pre-COVID inventory marks, marking a clear shift toward a buyer's market
• Analysts, including those at Realtor.com and ResiClub Analytics, point out that "the pendulum is swinging back toward a balanced market" with significant gains for active buyers in leverage and choice

Summary Table: Rates and Market Conditions (August 2025)

Key Market Indicators

Signs That Buyers Are Gaining the Upper Hand

• As of May 2025, 56% of homes sold for under asking price, with the typical home closing around $45,000 below the list price. Homes are also lingering on the market longer—averaging 58 days, up about a week from a year ago New York Post.

• Builders report a cooling environment: existing-home sales fell to a nine-month low in June, though inventory hit its highest level since May 2020 at 4.7 months’ supply Kiplinger.

• In San Antonio, sellers are using aggressive incentives—like paying closing costs or bundling appliances—to attract buyers amid slowing transactions and longer listing times. The average home now takes 75 days to sell, up 17% from a year prior San Antonio Express-News.

Overall, these signs emphasize that buying conditions have tilted clearly in favor of purchasers—even if interest rates have not yet returned to the historic lows seen years ago.

What Does This Mean for Prospective Buyers?

If you’re financially ready, now is an opportune moment to explore homeownership or refinance options—particularly in markets where inventory has surged and sellers are more open to negotiation.

Final Takeaway

The combination of slumping mortgage rates—6.53% for conventional and 6.11% for FHA—and rising housing inventory underscores a clear shift toward a buyer-favored market. Whether you're a first-time buyer or looking to refinance or upgrade, today's market conditions deliver leverage and opportunity.

The latest research strongly supports the claim that lower mortgage rates—now around 6.53% for conventional and 6.11% for FHA—and the substantial, ongoing growth in home inventory have made the summer 2025 real estate market increasingly buyer-friendly.

With sellers reducing prices and more homes available, buyers benefit from improved negotiating positions and greater choice, confirming it's a buyer's market in many regions across the U.S.

For personalized guidance on navigating Brooklyn's real estate market in these favorable conditions, contact Brookyn Home Sweet Homes today.