Alex Shekhtman’s Expert Take on Mortgage Rates, Housing Supply, and Affordability
March 2025 – The U.S. housing market is heading into spring with big shifts on the horizon, and whether you’re a homebuyer, investor, or just keeping an eye on trends, understanding what’s coming is critical. Alex Shekhtman, CEO of LBC Mortgage, shares his expert insights on where mortgage rates, housing inventory, and affordability are headed – and what it all means for you.
Mortgage Rates: Some Relief, But No Fire Sale
Let’s start with the big question: Where are mortgage rates going?
After the rollercoaster of 2024, rates are expected to ease slightly, settling around 6.5% for a 30-year fixed mortgage. That’s good news for buyers who were holding out, but don’t expect a massive drop. The days of ultra-low rates are behind us, and today’s buyers need to adjust expectations accordingly.
“The smart move isn’t waiting for a perfect rate – it’s understanding how to structure your mortgage to work for you,” says Shekhtman. “There are ways to navigate rates, whether it’s through adjustable-rate loans, creative financing, or leveraging lender incentives.“
In short? Waiting for a miracle drop could cost you the right deal.
Housing Supply: Some Markets are Cooling, Some Are Still on Fire
The supply squeeze that’s been pushing prices up for years is starting to ease in certain areas – but it’s far from over. In Texas markets like Dallas and San Antonio, inventory has jumped nearly 50% compared to pre-pandemic levels. That’s translating to price cuts and better negotiating power for buyers.
But not every region is following suit. The Northeast and Midwest are still seeing tight inventory, which means sellers hold the upper hand. Cash offers and quick closings are still king in these competitive areas.
“Real estate isn’t one-size-fits-all,” Shekhtman explains. “If you’re in a cooling market, it’s time to negotiate hard. If you’re in a hot market, you need to be aggressive and decisive.”
Bottom line? Know your market, know your strategy.
Affordability: The Real Challenge
Even with rates softening a bit, affordability remains the biggest challenge. Prices are still climbing, just at a slower pace – Fannie Mae projects a 4.5% increase this year. High home values and elevated borrowing costs are keeping many first-time buyers on the sidelines.
“People ask me, ‘Is now a good time to buy?’ The answer is: it depends on you,” Shekhtman says. “If you’re financially ready and you find the right property, waiting could cost you more in the long run.”
That’s where smart mortgage strategies come in – rate buydowns, down payment assistance programs, and working with a lender who actually knows how to structure a deal.
Final Word: This Market Rewards Action
The Spring 2025 market is not about timing the bottom – it’s about knowing how to play the game.
- If you’re buying: Focus on negotiation and financing strategies rather than waiting for rates to plummet.
- If you’re investing, good opportunities exist everywhere – it all depends on your goal: for cash flow, look at markets with growing inventory, like Texas and parts of the West, where sellers are offering concessions; for appreciation, focus on areas with strong job growth, limited supply, and rising demand.
- If you’re waiting: Make sure you’re not sitting on the sidelines out of fear instead of strategy.
“There are always opportunities in real estate,” says Shekhtman. “The winners are the ones who know how to find them.”
Want to talk strategy and see what’s possible for you? Reach out to LBC Mortgage today.