Story perspectives

Mortgage Rates to Hold Steady Amid Housing Crisis

8/15/2025

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Summary

Story summary

Mortgage rates are expected to stay between 6.5% and 7% until 2025, with relief anticipated in 2026.
Only 20% of listings are affordable for households earning $75,000, indicating a housing affordability crisis.
Active listings increased by 24.8% year-over-year in July 2025, but pending sales decreased by 3%.
Home prices remain high, with a national median of $439,450 despite common price adjustments.
Market conditions vary regionally, especially in the South and West.

History

Historical Context

The Housing Act of 1949 aimed to provide 5 million affordable housing units in the U.S., addressing post-war housing shortages. However, by 2020, only 20% of listings were affordable for households earning $75,000, reflecting ongoing disparities. Today, rising mortgage rates and a 24.8% increase in active listings, alongside a 3% drop in pending sales, highlight the persistent housing affordability crisis, particularly in the South and West.

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Story summary

Mortgage rates are expected to stay between 6.5% and 7% until 2025, with relief anticipated in 2026.
Only 20% of listings are affordable for households earning $75,000, indicating a housing affordability crisis.
Active listings increased by 24.8% year-over-year in July 2025, but pending sales decreased by 3%.
Home prices remain high, with a national median of $439,450 despite common price adjustments.
Market conditions vary regionally, especially in the South and West.

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