#affordability-challenges

#affordability-challenges

FHA and VA loans are increasingly popular due to rising affordability challenges for first-time buyers.

Government-backed loans represented 34% of home purchases in 2024, the highest since late 2020.

National home prices are expected to rise by an average of 3.5% in 2025, with Freddie Mac predicting only 0.6% growth.

Lower mortgage rates in California led to a potential end of a homebuying slump but may result in increased home prices and economic trouble.

Mortgage interest rates have eased slightly, but homebuyers are still hesitant due to ongoing affordability challenges and strong home-price appreciation.

Despite a decrease in interest rates, applications for mortgages to purchase homes have dropped, with many potential buyers waiting for rates to drop further.