Increased home sales and more rate cuts coming in 2025, NAR’s Lawrence Yun predicts MABA MassachusettsRealEstate FirstTimeHomeBuyers MaBuyerAgent

 Home sales will increase during the next two years, while mortgage rates likely will hover around six percent, National Association of Realtors® (NAR) Chief Economist Lawrence Yun predicted on Friday. Yun analyzed the state of the U.S. residential real estate market and shared his 2025-2026 outlook during a forum at the 2024 NAR NXT, The REALTOR® Experience in Boston. After a challenging 2023 and 2024, Yun projected new-home sales will increase eleven percent in 2025 and eight percent in 2026, while the median home price will rise two percent in both years. He said existing-home sales are set to increase as well.

 “Maybe the worst is coming to an end,” he said. “I think there’s going to be roughly a ten percent boost of existing-home sales in 2025 and 2026.” Yun also expects six to eight more interest rate cuts, including four in 2025, making a six percent mortgage rate the norm. “Are we going to go back to four percent? Per my forecast, unfortunately, we will not,” he said. “It’s more likely that we’ll go back to six percent. That will be the new normal, bouncing around five point five to six point five percent.” Record employment also portends well for the real estate industry, Yun said. “When more people work, they have the capacity or they’re in a better position to buy a home,” he said. “Home sales depend mainly on jobs and mortgage rates.”

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