Should You Buy a Home Now or Wait? What 2025 Interest Rates & Tariffs Mean for Buyers

It’s the golden question I get asked daily:“Should I buy now… or wait?”

With interest rates in flux, new tariffs impacting materials and inflation, and whispers of a market shift in 2025, it’s no wonder home buyers feel stuck between FOMO and fear.

In this post, I’m breaking down:

• What the latest Bank of Canada rate cut means

• How U.S./Canada tariffs could impact home prices

• Why timing the market can backfire

• Who should wait—and who should act now

Let’s help you make a confident, informed move. 🏡

2025 Market Snapshot: What’s Happening Right Now

Here’s what we know:

📉 Bank of Canada Prime Rate dropped to 4.95% (as of March 2025), the first cut in over a year.

📈 Tariffs on U.S. goods and materials have increased, impacting construction costs.

🏘️ Inventory is still low, but buyer activity is heating up with improved affordability.

Translation:Buyers are regaining power—but there’s pressure building in the market that could shift conditions quickly.

How Interest Rates Are Influencing Buyer Power

The recent rate cut means:

• Lower monthly payments

• Increased mortgage affordability

• More buyers re-entering the market

Will Tariffs Cause Prices to Rise?

Yes—and no.

Tariffs on goods like lumber, steel, and electrical components increase the cost to build homes and complete renovations. This could slow new construction and limit housing supply.

🔁 Lower supply + increased buyer demand =upward pressure on home prices, particularly in urban centers.

So while interest rates may be dropping, home prices could start rising again—especially mid-to-late 2025.

Should You Buy Now or Wait?

Here’s a framework to help decide:

✅ Buy Now If...

• You’ve been pre-approved & are financially ready

• You’re buying a home to live in long-term (5+ years)

• You want to lock in a lower rate before demand spikes

• You're in a competitive market where prices are already rising

📌 Pros of buying now:

• Beat price increases

• Take advantage of lower rates

• More inventory than peak season

⏳ Wait If...

• You need time to save more for a down payment

• Your credit needs improvement

• You’re unsure about location or job stability

• You’re in a buyer’s market where prices are flat

📌 Pros of waiting:

• More time to prepare and plan

• Potential for better deals in off-peak markets

• Possible further rate cuts by late 2025

Why Timing the Market is Risky

Many buyers sit on the sidelines waiting for the “perfect” moment. But here’s the truth:

🏦 You can’t time interest rates perfectly

🏘️ You can’t control inventory or price trends

🕰️ Waiting often leads to missed opportunities

Instead, the right question is:

"Am I personally ready to buy?"

If the answer is yes, the best time to buy is when it makes sense for you—not the headlines.

How to Position Yourself for Success in 2025

Whether you buy now or later, preparation is key.

Here’s what to do next:

✅ Get Pre-Approved – Know your numbers and lock in your rate

✅ Download My Buyer Checklist – Get the full step-by-step guide

✅ Understand the market – Work with a mortgage broker who follows local trends

✅ Build a smart strategy – Know your walk-away number, timeline, and non-negotiables

📥 Grab your FREE First-Time Buyer Checklist here

Make the Move That's Right for You

In 2025, the housing market is shifting—and with it, opportunity is rising.

• Interest rates are down ✅

• Tariffs are adding pressure on prices ✅

• Buyers are gaining momentum ✅

If you're ready, don't wait for the market to change—get ahead of it.

Let’s talk about your goals, your budget, and what strategy works best for you. I’m here to help you move forward with clarity, not confusion.

💬 Book your free call or download the buyer checklist below.

LET'S TALK MORTGAGES

– Edith Parinas

'The Mortgage Broker ~ The Yogi ~ The Blogger'

Hello@EdithParinas.com