By New England Landmark Realty LTD

The stock market’s latest tumble has sent investors scrambling for safety in bonds, pushing mortgage rates below 7% for the first time in months. In Vermont, where affordability is already at a breaking point, this slight reprieve could fuel renewed interest in homebuying—if buyers can move fast enough.

Rates Drop, But Is It Enough?

As of this week, the 30-year fixed mortgage rate is averaging 6.79%, down 10 basis points from last week. The 15-year mortgage has fallen even further, down 22 basis points to 6.46%. It’s a welcome shift, but let’s be clear: Mortgage rates are still significantly higher than pre-pandemic levels.

For Vermonters looking to buy, this dip might provide just enough breathing room to re-enter the market—if they can find a home. Inventory remains historically low, and prices haven’t budged. In 2023, housing affordability hit a 38-year low. While lower rates help, they don’t erase the reality of rising home prices and stagnant wages.

The Vermont Angle: Supply and Demand Still Rule

Let’s talk inventory—or rather, the lack of it. Across Vermont, new home construction hasn’t caught up with demand, and builders are feeling the squeeze. The latest tariff threats on Canadian steel and aluminum could add $7,500 to $10,000 to the cost of a new home. Vermont builders, who already rely on imported materials, will have to either absorb those costs or pass them on to buyers.

Meanwhile, the existing home market remains tight. Many sellers, locked into 3% mortgage rates from the pandemic era, are hesitant to list their homes. That means fewer options for buyers, keeping competition (and prices) high. Even with rates dipping, the real question is: Will more homeowners finally decide to sell?

Rent vs. Buy: The Math Still Favors Landlords

Despite the drop in rate, the cost of homeownership in Vermont still outweighs renting in most areas. According to national data, there are virtually no metro areas in the U.S. where owning is cheaper than renting. That trend holds in Vermont, especially in Burlington, Montpelier, and Stowe. With property taxes high and wages lagging behind inflation, many first-time buyers are still priced out.

But here’s the kicker: rents aren’t exactly cheap, either. In Burlington, average rents for a two-bedroom unit are creeping toward $2,000. If mortgage rates dip further, renters who’ve been waiting on the sidelines might start making their move.

The Bottom Line: Act Now—Before the Market Shifts Again

Mortgage rates are down, but Vermont’s real estate market is still moving fast. Whether you’re a first-time buyer, a seller wondering if now’s the right time, or an investor looking for opportunities, you need a trusted expert who knows how to navigate these market swings.

That’s where Tony Walton and the New England Landmark Realty Team come in. With deep local expertise, a sharp eye on market trends, and a proven track record of success in Vermont real estate, Tony and his team will help you make the right move—before the next shift in the market leaves you behind.

🏡 Don’t wait. Call Tony Walton today at New England Landmark Realty or reach out directly to start planning your next step. Your dream home—or your best deal—is out there. Let’s get it