For homebuyers, especially first-time homebuyers, interest rate changes are particularly impactful because lower rates can make getting a mortgage loan easier, while higher rates can make it more difficult. 

In February, the 30-year fixed rate receded by 13 basis points from 6.89% to 6.76%, according to Freddie Mac, offering a glimmer of hope for prospective buyers as we enter the spring-buying season. 

However, inflation concerns may continue to fuel mortgage rate volatility, with most experts forecasting that rates will ease only gradually as we move through 2025. 

For many prospective buyers who have put off moving only to see prices soar while they waited for interest rates to drop, the quandary is whether now is the time to buy. 

Many real estate agents today are encouraging prospective buyers to answer these three questions.  

• Is your credit score strong? The best deals on mortgage loans go to those with the strongest scores 

• Have you saved enough for a down payment? The more you can pay upfront, the less you will have to borrow, and the less interest you will have to pay 

• Are you planning to stay in the home for a long time? With prices continuing to rise, buying now means you can start building equity. Consider that your home is a long-term investment, and you can always refinance when interest rates drop 

If the answers are positive, it may be time to go house hunting. Life changes happen whether the timing to buy a home is perfect or not. For prospective buyers who meet the above criteria, this spring could be the right time for them to get off the sidelines and start searching for the ideal home.   

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