Mortgage Rates Drop To 2025 Lows | August 2025 Housing Market Update | Bigger Pockets Video

Episode #1161

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Mortgage rates just hit their lowest point in 2025. The housing market correction spreads to nearly 50% of the country. Sellers are giving up as new listings begin to retreat. Is this just a normal correction or the signs of a housing market crash? Should you take the chance and buy now with lower rates and desperate sellers, or could this just be the start of a downward spiral? We’re giving the data on it all in this August 2025 housing market update!

Interest rates got some serious relief at the start of the month. We’re now around 0.5% lower than we were at the beginning of the year, bringing some much-needed affordability to the housing market. The cause? New and revised jobs reports are getting investors worried about the economy, and increasing our likelihood of a recession coming our way. But with less labor stability, will homeowners be forced to sell? And will we see foreclosures begin to rise?

Sellers are starting to realize what we all already know: it’s a buyer’s market. Would you sell your home when buyers have all the leverage? Probably not. And most sellers are feeling the same, choosing to hold onto their houses instead of putting them on the market. What’s the chance this locks up inventory yet again? Is this the tipping point for the housing market and a perfect window to buy? Dave’s giving his take today.

0:00 August Housing Market Update
1:15 Mortgage Rates Fall
5:40 Will Rates Keep Dropping?
10:23 Sponsor: Fundrise!
10:42 Home Price Correction Deepens
14:21 Sellers Have Had Enough
20:35 Foreclosure Update
26:45 Forced Selling? (Crash Predictor)