2025 may bring more homes but with familiar high prices.

Why it matters: Many people will remain locked out of homeownership. 

Here's what experts and industry pros predict is in store for mortgage rates, new builds, moves and more next year.

Rates will remain above 6%

U.S. mortgage rates are expected to be in the low- to mid-6% range at the end of 2025, according to Realtor.com chief economist Danielle Hale.

• Redfin's economists forecast rates to stay higher, near 7%.

Between the lines: "We're not going to see a big change in the affordability picture," Hale tells Axios.

• "It's still going to be challenging to get into the housing market," especially for first-time buyers, she says.

Lower mortgage rates "could even exacerbate" the country's housing crunch, Josh Altman, real estate agent and former cast member of "Million Dollar Listing L.A.," tells Axios.

• That's because "as mortgages become more affordable, more buyers are going to enter the market, creating greater competition and ultimately higher home prices," says Altman, who's also co-founder of Redy, a platform for home sellers and agents.

More new homes

Chief economist Lawrence Yun at the National Association of Realtors expects more single-family new builds.

• "There is still a housing shortage, and homebuilders are making good profits to continue expansion," he says.

Fewer "locked-in" homeowners

The mortgage "lock-in" effect, which has contributed to the housing market's woes by discouraging homeowners from moving, won't disappear next year — but it will lessen, Hale says.

By the numbers: In mid-2024, 84% of homeowners with a mortgage had a rate under 6%, down from 89% a year earlier, per a Realtor.com analysis.

• Hale expects that share to fall to 75% by the end of 2025, as more people choose to part with their current home loan.

What else experts predict

The average rate on the 30-year-mortgage was around 6.7% heading into the holidays, according to Freddie Mac.

The big picture: That's up from around 6% when the Federal Reserve cut interest rates in September.

• The central bank has continued to lower rates, while signaling fewer cuts are coming in 2025.

The bottom line: Mortgage rates hovered mostly between 6% and 7% this year.

Go deeper: Why mortgage rates are climbing

🏟️ Mayor Justin Bibb has informed Browns ownership the city plans to invoke the "Modell Law" to keep the team from moving to Brook Park. (Fox 8)

Local rapper Carlos Banks, aka KashBankx, was shot and killed in the Broadway-Slavic Village neighborhood last weekend. (Cleveland 19)

☘️ St. Patrick's Day parade officials are considering moving the annual march out of Cleveland due to the upcoming Cleveland Midway Project on Superior Avenue. (News 5)

🍽️ Worthy of your time: A look back at 10 Northeast Ohio restaurants that closed in 2024. (Crain's Cleveland 🔒)

Trying to save on travel this year? Consider "detour destinations" — oft-overshadowed places near perennial hotspots worth a closer look for the budget-conscious or crowd-weary.

Why it matters: Travel prices rose 10% from September 2019 to September 2024, per a recent NerdWallet analysis, leaving many searching for cheaper ways to get away.

Driving the news: "Detour destinations" will be a big 2025 travel trend, predicts Expedia's annual year-ahead outlook.

• "63% of consumers say they are likely to visit a detour destination on their next trip."
• Among Expedia's trending "detour destinations:" Reims, France (detour from Paris); Brescia, Italy (detour from Milan); Cozumel, Mexico (detour from Cancun); Santa Barbara, California (detour from Los Angeles) and Waikato, New Zealand (detour from Auckland).

Zoom in: Some travelers are embracing what Expedia calls "goods getaways," or traveling in search of a viral item they can't find back home — that chocolate bar from Dubai, for instance.

• "When going on vacation, 39% of travelers visit grocery stores or supermarkets and 44% shop for local goods they can't get at home."

The intrigue: "Noctourism," or traveling to bask in the glory of a stunning night sky, is another 2025 travel trend to watch, per Booking.com's 2025 travel predictions.

• Read more in the card below.

What they found: Booking.com's own list of trending destinations includes Sanya, China; Trieste, Italy; João Pessoa, Brazil; Tromsø, Norway and Willemstad, Curaçao.

Reality check: As much as travelers gripe about rising prices, they aren't stopping people from booking trips.

• 24.3 million people flew in August, "reflecting a 4% increase in U.S. domestic trips and a 3% increase in international trips compared to August 2023," per ticketing infrastructure firm Airlines Reporting Corp.

What's next: Having trouble putting an itinerary together for next year?Let AI take the wheel — 2025's version of closing your eyes and throwing a dart at a map.

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