A More Predictable Market Is Emerging

The Fed does not set mortgage rates, though its guidance shapes expectations. Most forecasts suggest rates will stay in the low-to-mid 6% range through 2026, with modest fluctuations rather than sharp volatility. In other words, we’re moving away from a reactive market and toward one defined by steadier, more predictable conditions.

That stability matters—particularly when paired with several policy changes that are quietly improving purchasing power and portfolio performance for buyers and investors alike.

One meaningful shift for investors is the return of 100% bonus depreciation. This allows investors to accelerate depreciation, reduce taxable income, and improve near-term cash flow. For many investors, this represents a strategic window: an opportunity to acquire well-positioned assets during a period of lower competition, while current depreciation benefits remain in place.

At the same time, increased FHA loan limits are expanding access for buyers. With the average Ada County sales price now hovering around $625,000, these updated limits better reflect today’s reality. FHA financing allows for lower down payments and more flexible debt-to-income ratios, creating viable pathways for first-time buyers—and thoughtful options for move-up buyers.

Locally, Ada County continues to demonstrate resilience. As of December 1, existing homes averaged $625,353, up 2.5% year over year, and 501 homes sold in November—an 8.7% increase from last year. While seasonal slowing is expected, the final quarter of 2025 has remained active, signaling continued demand and buyer confidence even in a higher-rate environment.

The larger takeaway is this: interest rates are only one piece of a much bigger equation. Timing, positioning, financing structure, and long-term strategy matter far more than short-term headlines.

For those considering a move, an investment, or simply assessing how today’s market conditions fit into a longer-term plan, we’re always available for thoughtful, discreet conversations. Perspective often matters more than timing—and we’re happy to provide both when helpful.

Lysi Bishop Real Estate is an expert in the Boise Real Estate market, offering unmatched expertise and unparalleled service to clients around the Treasure Valley. With over 30 years of in-depth knowledge and experience, Lysi Bishop inspires and leads her team of dedicated agents towards earning the title of the Best Boise Real Estate Team, year after year.

Our team specializes in luxury homes and five-star, concierge-style service in Boise and all surrounding areas, including neighborhoods like the North End, East End, Highlands, Collister, Harris Ranch, Warm Springs Mesa, East End Foothills, Boise Bench, SE Boise, Barber Valley, and West Bench, and extending into Eagle, Two Rivers, Hidden Springs, Meridian, Nampa, and Kuna.