Mortgage rates are predicted to stay mostly flat this year, with a slight decrease in the near term, according to a report from Zillow. The real estate marketplace company also projects just a 0.6% increase in home values this year — a downward revision from its previous estimate of 0.9% price growth.

Zillow cites a rise in listings as a reason for the revised projection, as greater supply gives buyers more negotiating power. The company foresees a seasonal boost in spring homebuying, with existing home sales projected to increase 1.1% this year to 4.1 million.

Still, Zillow predicts that existing home sales will not reach pre-pandemic levels anytime soon, with many potential buyers choosing to rent until interest rates start to decline. This trend is expected to put upward pressure on rental prices, according to Zillow, with a projected 3.6% rise in single-family rents in 2025 and a 2.5% increase in multifamily rents.