Mortgage interest rates have always played a pivotal role in the real estate market, influencing both buyer behavior and home sales. In 2025, with rates hovering around 6.8%, the dynamics of buying and selling homes have shifted. For homeowners in East Pierce County considering selling, understanding the impact of these rates is crucial. At Onsite Real Estate Group, we're here to guide you through these changes and help you make informed decisions.
As of May 2025, the average 30-year fixed mortgage rate stands at approximately 6.8% . This rate is significantly higher than the historic lows experienced during the pandemic years, where rates dipped below 3%. The increase in rates has been influenced by various economic factors, including inflation and Federal Reserve policies.
Higher mortgage rates mean higher monthly payments for buyers. For instance, a 1% increase in mortgage rates can reduce a buyer's purchasing power by about 10%. This reduction in affordability has led some potential buyers to delay their home purchases or adjust their budgets, impacting the overall demand in the housing market.
The rise in interest rates has contributed to a slowdown in home sales. In April 2025, U.S. existing-home sales decreased by 0.5% from the previous month, marking the slowest sales pace for April since 2009 . This decline reflects the challenges buyers face with higher borrowing costs.
In East Pierce County, the effects of rising interest rates are evident. While the area continues to attract buyers due to its desirable location and amenities, the increased cost of borrowing has led to longer listing times and more price negotiations. Sellers may need to adjust their expectations and pricing strategies accordingly.
For sellers navigating this high-interest-rate market, several strategies can help:
Understanding the nuances of the current market is essential. At Onsite Real Estate Group, we provide expert guidance tailored to East Pierce County's unique market conditions. Whether you're considering selling now or planning for the future, our team is here to support you every step of the way.
