Rachel Cruze Answers 6 Big Housing Questions for 2025

The American housing market has been difficult to predict in the 2020s, with such extraordinary events as an international pandemic and wildly spiking interest rates having a massive impact on the market. That said, there are ways to predict the direction in which the housing market will go in 2025, and financial expert Rachel Cruze has them.

Considering buying or selling a home in 2025? Cruze has predictions regarding interest rates and mortgages, on the possibilities of a market crash, housing supply and demand and more. 

Also see the projected top 50 markets this year.

As Cruze noted, now could be a good time to buy a house — and it might not be. It depends: Can you say yes to each of the following questions?

Are you debt free? Do you have an emergency fund of 3-6 months of expenses? Will your monthly house payment on a 15-year fixed-rate mortgage be 25% or less of your income? Can you make a down payment? Can you pay closing costs?

If your answers are no, then the state of the market really has no bearing on you; you’re just not ready. However, as Cruze puts it, the market doesn’t determine whether it’s a good time to buy a home. Your wallet does.

“If you’re prepared financially, then it’s a good time to buy a home.”

While President Trump can have some impact on the housing market, he cannot control interest rates or housing prices. Rather, Cruze noted, homebuyers have more control of their own money than Trump. 

“Even if home prices come down under Trump,” she said, “it’ll still be your job to pay off your debt, build an emergency fund and save up a strong down payment.”

That said, be advised that Trump’s implementation of tariffs could impact supply and demand, and cause housing prices to rise or possibly create a shortage of new homes. 

As Cruze pointed out, with home supply rather low at the moment, it’s not a buyer’s market.  Prices are high, but some of the buying competition has slowed, making home purchases easier.

Conversely, it is very much a seller’s market at the moment, as the demand for homes currently surpasses the supply.

Cruze pointed out that mortgage rates began to fall from 2023 to 2024 following a massive two-year spike. So, will interest rates plummet? Not exactly. The Mortgage Bankers Association has projected that 30-year mortgage rates will stabilize for “the foreseeable future,” meaning interest rates aren’t likely to fall.

Foreclosures decreased by 10% in 2024, and that’s a trend Cruze predicted will continue.

While there are a number of smaller local markets that GOBankingRates has predicted will plummet in 2025, overall, Cruze has asserted that the overall housing market will not drastically crash in 2025. She pointed out that the Federal Home Loan Mortgage Corporation indicates prices are expected to grow in 2025.