BLOGBlog posted On October 10, 2025
Housing prices are influencing how people think about family size, timing, and lifestyle choices. The American Dream of owning a home is intrinsically tied to the idea of family, and it’s affecting parents deciding between having one more child or buying a bigger home. Let’s examine the affordability factors at play with the modern family and establish how homeowners can still get ahead with smart planning and support from us, their reliable lender.
How Housing Prices Are Affecting Family Decisions
A recent NPR article reported that many families are torn between a tough decision: more children or owning a house. In some cases, homeowners are deciding against children entirely, running up against too many affordability barriers.
NPR cites this bottleneck situation as stemming from the pandemic. Because of the ultra-low mortgage rates of 2020-2022, many first-time home buyers have found themselves chained to their record-breaking rates. And after rates shot back up, the same homeowners realized the difficulty of leaving their starter homes and upsizing to a larger house. This particularly affected parents who were hoping to have more children, but the idea of getting rid of their unbeatable rate has caused many to stay in their current properties and limit their family size.
Smart Strategies for 2025’s Housing Market
Don’t despair! Every housing season has its ups and downs, and we’re here to provide you with some solutions fit to your lifestyle, needs, and goals. You may qualify for an FHA or USDA Loan depending on the properties you’re looking at. Or you may be a Veteran and have numerous programs tailored for home buyers like you. Do you work in a niche profession? Perhaps your company offers mortgage benefits? Regardless, it’s your loan officer’s responsibility to leave no stone unturned, just in case a specific program is the perfect fit.
Down Payment Assistance (DPA), Closing Cost Programs, & Buydowns
The below programs are just a small sampling of options available to our borrowers. You and your loan professional can deep dive into specific state and city DPA products that are local to you.
Keep the Starter Home as an Investment
If you’re one of the families who feel stuck in your low-rate starter home, here’s a strategy to consider: convert the property into an investment and rent it out, turning it into an additional income source to help fund your new, bigger home. Admittedly, not all desire to become landlords, but you could possibly rent to close family members or friends who are looking to rent instead of buy, keeping it to people you know and trust.
Refinance Down the Line
A common saying in this industry is “date the rate, marry the house.” It essentially means that while purchasing a home is a long-term commitment like marriage, your mortgage rate and terms can be flexible, so you aren’t tied to your rate forever. If it drops, you can ditch the old rate and “date” the new one. And with programs like Rate Rebound, you can plan for the best in case rates fall within five years and you can refinance, all while saving on lender fees through this option.** It’s a win-win situation!
The Way Forward
We hope this has been helpful for helping potential buyers and current homeowners decide the best way forward. Many are still playing the waiting game, biding their time for rates to drop back down. Recently, rates have indeed begun trickling down a little, so it’s imperative to set realistic expectations while hoping for housing trends to shift. If you’re curious about learning more, reach out any time to start mapping out your future steps.
Source: NPR
*These products may have higher interest rates, more points, or more fees than other products requiring documentation.
**CMG Home Loans will cover all customary lender fees, which are lender administrative fees, tax service fees, appraisal fee, and credit report fee. This offer does not cover discount points. Credit cannot exceed total fees. Rate Rebound is only valid on future conventional conforming, government, and jumbo loans in our retail channel (future Construction Loans, All in One, HELOCs, Bond, or HFA loans are excluded). Rate Rebound is only available on loans originated by CMG Home Loans. There may be additional restrictions based on investor. Offer may not be redeemed for cash or credit and is nontransferable. Offer cannot be retroactively applied to any loans. Offer may not be used with any other discounts, promotions, or interest-only/buy-down and second-lien products. This offer is subject to changes or cancellation at any time at the sole discretion of CMG Home Loans. Additional restrictions/conditions may apply. This is not a commitment to lend and is contingent on qualification per full underwriting guidelines. Program will be available on loans disclosed on or after 11/1/22. Program is applicable for refinances 6 months after closing up to 5 years from original note date and with a net tangible benefit which includes a rate reduction of 0.5%, going from an ARM to fixed rate, reducing loan term, movement to a more stable product, or a lower principal and interest payment. By refinancing the existing loan, the total finance charges may be higher over the life of the loan.
