The Idaho housing market continues to show signs of resilience heading into the end of 2025. While mortgage rates remain elevated compared to the record lows of previous years, the pace of price growth has stabilized, and inventory levels are slowly improving across the state.
Mortgage Rate Outlook
As of late 2025, Idaho’s
30-year fixed mortgage rate generally ranges between
6.25% and 7.1%, depending on borrower credit, down payments, and lender programs. The
15-year fixed rate typically falls between
5.75% and 6.5%.
Most analysts expect rates to stay in this general range for the remainder of the year, with a possible gradual decline if inflation continues to ease. Even small drops in rates could have a meaningful impact — for example, a 1% decrease on a $400,000 loan can reduce monthly payments by roughly
$250.
Key Market Trends and Statistics
Home Prices:
The median listing price in the Boise metro area is around
$585,000, reflecting a modest increase of about 4–5% from last year. Across the state, prices are stabilizing, with many markets seeing slower growth but continued demand for well-located and updated homes.
Inventory Levels:
Home inventory has improved slightly statewide, increasing by about
10–15% compared to last year. However, supply still lags behind pre-pandemic norms, especially in Ada, Canyon, and Kootenai counties. New construction is helping fill the gap, though build times and costs remain factors.
Affordability:
Affordability remains a challenge, particularly for first-time buyers. Elevated mortgage rates and steady prices mean many households must adjust expectations on size or location. Some buyers are exploring adjustable-rate mortgages or looking farther from urban centers for better value.
Regional Shifts:
Suburban and rural demand continues to rise as families seek more space, newer construction, and quieter neighborhoods. Towns surrounding Boise, Twin Falls, and Coeur d’Alene are experiencing increased buyer activity as remote and hybrid work lifestyles persist.
Population and Growth:
Idaho remains one of the nation’s faster-growing states by population. In-migration from higher-cost areas is sustaining housing demand and contributing to continued competition for desirable listings. This population growth supports property values but adds pressure to already limited supply.
Market Conditions to Watch
- Competitive Listings: Well-priced homes in desirable areas continue to draw multiple offers, particularly in the $400K–$600K range.
- Moderate Price Growth: Expect annual appreciation around
4–6% statewide, with Boise and Meridian potentially at the higher end of that range.
- Improving Inventory: While more homes are hitting the market, buyers still face limited options compared to long-term averages.
- Steady Demand: Lifestyle buyers and relocations from neighboring states remain key market drivers.
What It Means for Buyers and Sellers
For Buyers:
Patience and preparation are key. Getting pre-approved early, monitoring rate trends, and being ready to act when the right home appears can make a significant difference. Even in a higher-rate environment, competition remains strong for quality listings.

For Sellers:
Conditions remain favorable for those pricing realistically. Homes in move-in condition or with recent updates tend to sell quickly, especially in high-demand neighborhoods. With inventory still below average, sellers retain an advantage heading into 2026.
*The mortgage rate data, housing forecasts, and lending information provided are for informational purposes only and reflect estimates and publicly available reports as of early 2025. Sources such as Bankrate.com, KBOI, Fannie Mae, JVM Lending, and Realtor.com are cited for reference, but their projections are not guarantees of future outcomes. Mortgage rates, home prices, and loan limits may vary based on individual circumstances, location, and lender policies. Please consult a licensed mortgage or real estate professional for personalized guidance and the most current information.
