The 2025 Housing Market: What Buyers and Sellers Can Expect Right Now
June 26, 2025
After a few years of volatility, today’s real estate market is starting to find its footing. While mortgage rates remain higher than they were during the ultra-low periods of 2020–2021, they’ve begun to stabilize — and that’s giving buyers a clearer window for planning their next move. One powerful tool that many buyers are using to their advantage? Locking in their mortgage rate.
Here’s what you should know about rate locks, how they work, and who can benefit from them.
What Does It Mean to Lock in Your Mortgage Rate?
Locking in your mortgage rate means securing your interest rate before you actually close on your home. This helps protect you from future rate increases while you continue your home search or wait for your deal to close.
In many cases, rate locks are offered at the time of mortgage pre-approval. This step confirms your borrowing power based on your credit, income, and financial documents, and can include the option to secure your rate for a set period (typically 60–90 days). This allows you to confidently search for homes knowing your budget won’t be shaken by sudden rate hikes.
Who’s Eligible to Lock Their Rate?
Not all loan types qualify for a rate lock. Most conventional and government-backed fixed-rate loans do, but jumbo loans, adjustable-rate mortgages (ARMs), and certain specialty financing programs may not be eligible.
At Edina Realty Mortgage, qualified buyers can take advantage of the Lock, Shop & Home program when they:
• Are pre-approved through the Buyer Advantage® program
• Are applying for a conventional or government-backed fixed-rate loan
• Need up to 90 days to shop (longer lock periods may be available for an additional fee)
What Happens If Rates Drop After You Lock In?
Many buyers worry that they’ll miss out on a better deal if rates drop after they lock. Fortunately, some lenders — including Edina Realty Mortgage — offer a one-time “float-down”. This means that if rates drop significantly during your search, you may be eligible to adjust your locked rate downward.
It’s a best-of-both-worlds scenario: your rate is protected if the market goes up but flexible if it goes down.
What If You’re Building a New Home?
If you’re building new construction, a 90-day lock might not be long enough. That’s where extended rate-lock programs come in.
The Builder’s Assurance program from Edina Realty Mortgage allows eligible borrowers to lock in their rate for up to 365 days. This is ideal for buyers:
• Building a new construction home
• Applying for a 30-year conventional fixed-rate loan under $750,000
• Planning to occupy the home as a primary residence
This program also includes a one-time float-down option, giving you added peace of mind during the build.
Should You Lock In Now or Wait?
Timing your rate lock is important. If you’re just starting your home search, you may want to wait until you’re actively making offers. If you’re ready to move quickly, a rate lock can protect your buying power and give you stability in a still-shifting market.
As always, your best next step is to speak with a trusted mortgage professional. They can review your situation, explain your loan options, and help you decide whether a rate lock makes sense based on your timeline and goals.
Let’s Talk Real Estate — And Your Next Move
Whether you’re buying, selling, building, or investing, I’m here to help guide you through it all. If you’d like a no-obligation conversation about your financing options or what you can expect in today’s market, reach out anytime. I’d be happy to connect you with a trusted loan officer and help you take the next step toward your real estate goals.