Over the past few years, prospective homebuyers had to contend with elevated mortgage interest rates, low for-sale inventory and steep home prices. These factors have kept many would-be homebuyers on the sidelines, but the housing landscape is starting to shift, at least somewhat.
Mortgage rates have declined overall for the last few weeks, for example, and recently hit a three-year low. Housing inventory is at its highest level since May 2020, according to the National Association of Realtors. The Federal Reserve also just conducted its first rate cut of 2025, lowering the federal funds rate by a quarter percentage point as it tries to balance increasing inflation and a shaky labor market. Future Fed rate cuts could be on the horizon as well.
Given these conditions, does homebuying make sense this fall? Here’s what experts have to say on the subject.
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Does homebuying make sense this fall? Pros and cons experts say to know now
If you’re thinking of purchasing a home soon, here are three pros and cons experts say to be aware of this fall homebuying season.
Pros of buying a home this fall
The advantages of buying a home this fall include:
Less competition
People buy homes at all times of the year, but the peak homebuying season tends to be in the spring and summer. That could be a major advantage for you if you’re looking to buy this fall.
“There’s less competition. A lot of families don’t want to move and pull their kids out of school to move into a different district, and so that just creates less competition for the buyer,” says Bill Banfield, chief business officer at Rocket Mortgage.
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Potential incentives
The fall homebuying season may come with another major advantage. As we get closer to the end of the year, lenders may offer potential incentives to help them meet their annual goals or drum up business during a typically slow time of the year.
“Some lenders who are trying to hit specific year-end quotas may drop rates or offer other incentives to bring borrowers in the door as we head towards the end of the year,” says Sarah DeFlorio, vice president of mortgage banking at William Raveis Mortgage.
So while you’re looking at homes for sale, research various lenders to compare your borrowing options. You may be able to take advantage of extra incentives this time of year.
Possibility of quick equity
Home values have seen monumental growth recently, and if that trend continues, it could pay off for buyers who make a move now.
“It does feel like we’re in a little bit of a sweet spot of improved interest rates, moderate demand and heightened supply, so it does feel like a really good sweet spot for folks to be aggressively searching for homes,” says Jason Lerner, branch manager at First Home Mortgage.
Over the past five years, for example, home values rose by 45.3%, according to Zillow data. While that has made it tough to break into the market, it could also mean that you’re able to build equity faster than normal.
“I do think someone would be better positioned to buy today than they will be tomorrow, and then even more so, waiting for a spring season to hit again,” says Lerner.
Cons of buying a home this fall
And, here are several potential disadvantages of buying a home this fall:
Lower inventory
If you want to buy a home in the fall, you could benefit from less competition. The other side of the coin is that there may also be a lower housing inventory, as sellers tend to list their homes in the spring and summer months. In other words, you may have less competition, but there may also be fewer options to choose from compared to the peak homebuying seasons.
“You’re entering the period where there could be less homes available, and it might be a little tougher to find the home that you like,” Banfield says.
Future rate opportunities
The Fed’s actions don’t directly affect mortgage rates, but the Fed does have a big impact on where rates head over time. And, the Federal Reserve made its first cut to the federal funds rate in September, which resulted in mortgage rates dropping to a three-year low on average.
Mortgage rates may have the potential to fall further, however, as the Fed is widely expected to cut rates again in the near future. So, if you buy now, you could miss out on lower rates if they happen. Remember, though, that waiting for rates to fall further can be risky for other reasons. So, be sure to weigh both sides before making any moves.
“If you think that waiting a few months might bring rates down a bit, you could be right, but it will also mean increased competition and potentially losing out on a fabulous property that was the right fit for you,” says DeFlorio.
Possible holiday delays
Later in the fall, homebuying could be complicated by the holidays, as logistical challenges could arise. As people travel for the holiday season or take time off, it could result in delays in terms of showings, inspections or other home-related requirements. Plus, you may have higher expenses during this season, which could further complicate matters.
The bottom line
Prospective homebuyers have had to deal with elevated home costs and a high-rate environment throughout much of 2025. But thanks to a recent drop in mortgage interest rates, buying during the fall season could be a good move, at least for some buyers. Others, though, may find it more beneficial to wait, as there are also a few potential downsides to making your move now.