Despite mortgage rates holding firm near 7%, the housing market is showing surprising strength. That’s not what many expected—and that’s exactly why it matters.

The Housing Market Is Holding Steady—Here’s Why That Matters

According to HousingWire’s Mortgage Rates Center (June 2025), 30-year conforming loan rates are averaging 7%, showing minimal movement over the past few weeks. Since early April—when President Trump reintroduced global tariffs—rates have hovered above 6.8%. Jumbo and FHA loan rates have also remained steady, with only minor fluctuations. Yet, homebuyers and housing activity remain resilient, fueled by rising inventory and a stable job market.

What This Means: Key Takeaways from the Field

1. Rising Inventory Is Offsetting Rate Pressure

We’re seeing a rare moment where higher rates aren’t immediately slowing down buyer interest. Why? More homes are hitting the market, giving buyers real options—and real motivation to act. Increased supply balances the pricing power and creates room for negotiation.

2. Steady Employment = Steady Demand

A strong labor market is doing the heavy lifting here. With unemployment low and wage growth solid, people still feel confident about big purchases—even with less-than-ideal financing conditions.

3. Flat Rates Signal Market Stability (Not Panic)

The fact that rates aren’t spiking or dropping sharply tells us one thing: the market isn’t reacting with fear. Instead, this plateau gives both buyers and sellers a predictable playing field to make decisions without rushing.

4. FHA and Jumbo Borrowers: Marginal Gains Still Matter

Even small drops—like the 3 basis point dip in jumbo loan rates—can save thousands over the life of a loan. These shifts may not grab headlines but are very real for high-balance borrowers running the math.

What Should You Do? Practical Moves Based on Today’s Conditions

• For Homebuyers: If you’ve been waiting for rates to drop further, you might be waiting too long. Focus instead on inventory opportunities and negotiate smarter—especially if a property has been sitting for a few weeks.
• For Sellers: List with confidence—but price with awareness. More homes mean more competition. Ensure your property stands out through staging, flexible terms, or pricing strategy.
• For Investors: Watch the rental market closely. As mortgage rates remain high, more would-be buyers could continue renting—supporting multifamily asset stability, especially in growing metros.

Micro Q&A: What Is a “Conforming Loan”?

What is a conforming loan?

It’s a mortgage that meets Fannie Mae and Freddie Mac’s standards, including the loan size limit (currently $806,500). These loans usually offer better rates and terms than non-conforming options.

Smart Tools Can Help Navigate Steady-but-High Rates

Platforms that pre-qualify borrowers or use AI-driven rate lock alerts can help buyers act at the right moment—without constantly tracking the market manually.

Reader Questions You Might Be Asking Next

Should I refinance if rates drop slightly from here?

Only if you’re shaving at least 0.5–0.75% off your current rate—anything less may not offset closing costs.

Will the global tariff policy affect home prices directly?

Indirectly, yes. Higher import costs (like building materials) can affect new home prices, which in turn pressures resale pricing.

Are adjustable-rate mortgages a better option now?

Possibly, but only if you plan to move or refinance before the rate adjusts. Otherwise, fixed may still offer peace of mind.

Final Thought:

High rates aren’t always a red flag. Sometimes, they’re just the cost of doing business in a stable, growing economy. The real opportunity lies in understanding the why behind the numbers—not just the numbers themselves.