Rent hikes, limited inventory, and an uncertain market might seem like reasons to hold off on buying a home. But for many in Maryland and beyond, those conditions are why they’re moving forward. Buying a home in 2025 despite high interest rates still works—not because it’s easy, but because the alternatives offer even less control.
While interest rates are high by recent standards, they’re not permanent. What is permanent is the chance to start building equity, secure predictable monthly costs, and find a place that actually suits your life, not just your lease.
Interest Rates Can Change—Equity Doesn’t
Today’s average 30-year fixed mortgage rate is around 7%. It’s higher than buyers saw in the early 2020s, but it’s still within the historical average. Most homeowners don’t stick with their original loan for 30 years. According to data from the National Association of Realtors, the average duration people keep their mortgage is under 10 years. Buyers can refinance later as conditions improve.
Meanwhile, equity begins to build from the very first payment. Each month, a portion of the payment chips away at the loan balance, increasing ownership in a tangible asset. Unlike rent, which disappears into someone else’s pocket, mortgage payments serve the buyer’s future wealth.
Home Prices Are Holding—Not Falling
Predictions of a dramatic housing crash have largely fallen flat. While home values in some overheated markets have cooled, price reductions haven’t matched the scale of early-2000s declines. Instead, many areas—including parts of Maryland—have seen home prices stabilize. This creates more predictability for buyers, not less.
In neighborhoods like Columbia and Bowie, moderate price adjustments are paired with motivated sellers, which results in better negotiating opportunities and reduced competition.
Sellers are more willing to accept:
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Contingencies that protect buyers
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Closing cost assistance
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Temporary interest rate buydowns
These terms were unthinkable during the frenzy of 2021 but are back on the table now.
Rent Is the Real Financial Drain
Renters often think they’re playing it safe. But rent increases continue to outpace wage growth in many metropolitan areas. According to the U.S. Bureau of Labor Statistics, shelter costs were one of the largest contributors to the Consumer Price Index (CPI) rise through early 2025.
What does that mean for Maryland renters? In high-demand areas like Silver Spring or Hyattsville, rent has increased 6–10% year over year. Over the course of five years, those increases can cost far more than any potential savings from a slightly better interest rate later.
Homeownership, on the other hand, offers cost stability. A fixed-rate mortgage means your payment’s principal and interest portion stay the same year after year.
You Can Change the Rate—Not the Home
This isn’t just real estate wisdom; it’s reality. Homebuyers fall into trouble when they prioritize the wrong metric. Interest rates are changeable. The right property in the right location at the right price is much harder to find.
Whether it’s a townhome near a reliable commuter rail or a single-family house zoned for top-rated schools, that property may not be available—or affordable—next year. Buyers who wait for rates to drop risk facing higher property prices or increased buyer competition.
In contrast, locking in a home now and refinancing later provides long-term flexibility without sacrificing location or lifestyle.
Lenders Offer Tools That Reduce Upfront Costs
Mortgage financing has evolved in response to current market pressures. Buyers today aren’t stuck with off-the-shelf options. Many are choosing structured solutions that reduce early costs.
Consider:
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2-1 Buydowns, where the seller or builder pays to reduce the interest rate for the first two years
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Adjustable-Rate Mortgages (ARMs) for buyers with plans to move or refinance within five to seven years
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State-funded down payment assistance programs, like those provided by the Maryland Mortgage Program, help first-time buyers enter the market with less cash upfront
These tools are designed to lower entry barriers, giving more buyers a chance to build equity now, not later.
Real Estate Beats Inflation Over Time
Inflation impacts the cost of everything—from groceries to gas—and real estate is no exception. However, unlike most expenses, real estate tends to appreciate during inflationary periods. As material and labor costs rise, so does the replacement value of housing.
Homeowners benefit in two ways:
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Their mortgage payment stays the same while rent and wages rise
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Their home’s market value tends to increase, boosting overall net worth
This makes real estate a reliable hedge against inflation, especially when cash savings lose purchasing power over time. Investopedia’s coverage of inflation hedging explains this dynamic in greater detail.
Personal Life Changes Matter More Than Market Timing
No one can predict the perfect buying moment. Rates may drop slightly or spike again depending on economic policy, global markets, or inflation trends. But personal milestones—starting a family, relocating for work, downsizing—don’t pause for rate shifts.
If you’re financially ready and need a change in your living situation, it makes more sense to buy the right home at today’s terms than to keep delaying. Trying to time the market often leads to missed opportunities.
Maryland Still Offers Valuable Inventory
Despite rising prices in some counties, Maryland continues to offer opportunities for buyers. Suburban pockets like Laurel, Odenton, and Upper Marlboro provide relative affordability compared to D.C. Proper or even Bethesda.
These areas offer:
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Newer homes with more square footage
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Access to transportation corridors like I-95 and MARC lines
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Competitive school systems and growing job markets
In short, Maryland is still a prime location for building long-term value, especially when working with a local expert like Nechelle Robinson who understands neighborhood shifts and emerging opportunities.
Stability Is the Ultimate Investment
A home provides more than financial gain. It offers psychological and emotional stability. There’s comfort in knowing your rent won’t increase next year, your landlord won’t sell the property, and you can finally paint the walls whatever color you choose.
In an unpredictable world, that kind of control is rare—and valuable. The cost of waiting is not just dollars and cents; it’s peace of mind, community connection, and planning certainty.
Don’t Let Rates Distract You from the Bigger Picture
High interest rates might seem like a red flag. But for many buyers, they’re just one piece of the equation. Buying a home in 2025 despite high interest rates still works because it focuses on long-term equity, stability, and flexibility.
Those who buy now—armed with knowledge, smart financing, and expert guidance—will benefit financially and personally in the years ahead.
