Homebuying Strategies in Uncertain Times: Expert Q&A

Home buying in 2025

With mortgage rates stubbornly remaining higher for longer than anticipated and inventory still rebounding, first-time home buyers are having trouble in 2025.

Flexibility and preparation can help you stand out in a crowd of buyers, while being “clear-headed and well-informed tend to win more often than not,” according to Atlas Real Estate’s Tony Julianelle.

We spoke with Julianelle about how first-time home buyers can navigate the housing market amid low affordability, growing uncertainties and geopolitical instability.

Meet the expert

Tony Julianelle is the chief executive officer at Atlas Real Estate. Based in Denver, he has over 25 years of experience in the real estate and finance industries. Tony and his team specialize in investment services, property management, institutional acquisitions, and buy/sell brokerage.

Julianelle shared his thoughts and insights in a Q&A with The Mortgage Reports. Answers have been edited for brevity and clarity.

How have recent tariffs on construction materials affected the costs of building and maintaining properties?

The recent tariffs, especially those enacted in early 2025, have had a significant ripple effect on the cost structure for both new construction and ongoing property maintenance. Take steel and lumber, for example—core materials in everything from framing to roofing to fencing.

Steel prices have spiked somewhere between 15% and 25% since the tariffs went into effect, and the tariff rate on Canadian lumber has jumped to 34.5%, which is now directly contributing to a 17% increase in lumber costs year-over-year. These aren’t small fluctuations. They compound into real increases in the cost to build housing and even to maintain it—renovations, rehabs, insurance-mandated upgrades, all of it becomes more expensive.

What’s more challenging is that these costs aren’t easily absorbed or offset, especially in the affordable and workforce housing segments, where margins are already tight and value engineering is pushed to the limit. So, while the headline might focus on trade policy, the downstream effect is that it makes housing less attainable for families and reduces the incentives for investors and developers to bring new units to market.

How can prospective homebuyers navigate higher costs brought on by tariffs and economic volatility?

With tariffs driving up material costs and inflation still exerting pressure on household budgets, buyers need to be both pragmatic and creative.

One of the smartest moves is to take advantage of local down payment assistance programs. Colorado, for instance, has CHFA’s programs that can provide up to $25,000 in grants or low-interest second loans. That’s real money that can make the difference between buying and staying on the sidelines.

Buyers can also shift their strategy by targeting more affordable product types—maybe that means a duplex with rental income potential, or a smaller footprint in a less competitive zip code. Economic uncertainty makes timing the market nearly impossible, but flexibility—on location, size, even timing—gives buyers more leverage and optionality.

I also encourage buyers to stay informed and engaged. Market conditions can shift quickly, and those who are watching closely are best positioned to act when opportunities emerge.

What mortgage products or financial assistance should first-time home buyers explore?

First-time buyers today have more tools available than many realize—it’s just that the education piece often lags behind. In Colorado, the CHFA FirstStep and FirstStep Plus programs provide fixed-rate FHA loans bundled with down payment assistance. That can be game-changing for someone who’s saved responsibly but still finds that the cash-to-close hurdle feels out of reach.

On a national level, Fannie Mae’s HomeReady program is worth a close look, especially for very low-income buyers—it offers a $2,500 credit that can go toward down payment or closing costs, which again can create a path to ownership that didn’t seem available.

FHA loans are another great option, particularly for buyers with less-than-perfect credit. With a score of 580 or higher, a buyer can put down as little as 3.5%, which is a far cry from the old 20% myth that still lingers. The bottom line is, if you’re a first-time buyer, there are more pathways to homeownership than you think—it’s just a matter of matching your financial profile with the right tools.

In light of rising costs and overall instability, what is your outlook on the future of home buying?

We’re in a moment of tension in the housing market—prices are high, interest rates have climbed, and consumer confidence has taken a hit. And yet, I’m not pessimistic.

What we’re seeing right now is the market slowly working through a recalibration. Yes, prices rose about 3.4% year-over-year as of March 2025, but that rate of increase is cooling. Inventory is creeping up, and while we’re not back to pre-pandemic levels, we’re starting to see more balance between buyers and sellers in some metros.

Long-term, homeownership remains a powerful wealth-building tool, and demographic demand—especially from Millennials and Gen Z—remains strong. The instability we’re experiencing today is real, but it’s also temporary.

What I’d say to prospective buyers is this: don’t wait for perfect conditions. They rarely arrive. Instead, focus on whether buying a home makes sense for you given your job stability, life plans, and financial readiness. If it does, then there are ways to make it work—even in a turbulent market.

What can first-time home buyers do to help themselves stand out or improve their buyer profile?

In a competitive market, the difference between getting a home and getting passed over often comes down to preparation. First-time buyers need to think like pros. That starts with getting fully pre-approved for a mortgage, not just pre-qualified.

When a seller sees that you’ve already done the financial legwork and your lender has verified your income, credit, and assets, it builds confidence in your ability to close. Improving your credit score and saving for a larger down payment are also smart moves—both give you more options and negotiating power.

But beyond finances, I think mindset matters. Flexibility is huge. Being open to different neighborhoods, property types, or even adjusting your timeline slightly can help you capitalize on opportunities that others overlook. A strong buyer profile is part numbers and part attitude—and the buyers who come in clear-headed and well-informed tend to win more often than not.

What refinance options make sense if rates stay in the high-6% range, drop, or rise?

If rates stay in the high 6s, which is where we’ve been hovering lately, then refinancing for a better rate isn’t likely to pencil out for most borrowers unless they’re in a much worse loan right now.

But there are still use cases—cash-out refinancing, for example, can be a smart way to fund renovations or consolidate higher-interest debt. If rates drop meaningfully—and by that, I mean into the low 5s or high 4s—then we’ll see a strong case for traditional rate-and-term refinancing to lower monthly payments or shorten loan terms.

On the other hand, if rates rise into the 7s or beyond, the play becomes protection. For anyone shopping right now, locking in a rate becomes more urgent. For those already in homes, the conversation may shift toward strategies for managing payments—everything from biweekly payments to loan modification options if hardship strikes.

The broader point is this: refinancing isn’t just about chasing lower rates anymore. It’s about aligning your loan structure with your overall financial goals—and being proactive before external forces limit your choices.

What is the top thing (or things) you wish more home buyers knew?

I wish more people understood that buying a home is as much about preparation and mindset as it is about timing. We obsess over rates and price trends—and understandably so—but the most successful buyers are the ones who have their personal house in order, so to speak.

They’ve taken time to understand their budget, they’ve looked at the long-term implications of ownership, and they’re thinking beyond just getting the keys. Things like maintenance costs, property taxes, and how the home fits their life three, five, even 10 years from now—those are the questions that really matter.

I also wish more buyers gave themselves permission to be imperfect. You don’t need to have a 780 credit score and 20% down to start building equity. There are tools and pathways out there to help. The key is to be curious, seek advice from people you trust, and don’t let headlines define your sense of what’s possible.

The bottom line

This year’s high interest rates, high property values, and geopolitical turmoil add up to difficult conditions for first-time home buyers.

Fortunately, you can take steps to prepare yourself, become knowledgeable about your housing market, and learn to negotiate in order to potentially save you money and boost your chances at homeownership.

If you’re ready to begin, talk to a local lender to get started.