Mortgage rate predictions for 2025 vary, but most experts anticipate a slight decrease from the current levels, with the possibility of rates settling in the mid-6% range. While some forecasts predict a decrease to around 6.2% by the end of 2025, others suggest a more gradual decline, with rates potentially hovering around 6.5% or even 7% throughout the year.
Here's a more detailed look at different predictions:
Fannie Mae:
Fannie Mae initially projected rates to end 2025 at 6.3% and 2026 at 6.2%. However, recent revisions have lowered these expectations, with the latest forecast suggesting rates could end 2025 at 6.2% and 2026 at 6.0%.
National Association of Realtors (NAR):
The NAR predicts mortgage rates will average 6.4% in 2025 and 6.1% in 2026.
National Association of Home Builders (NAHB):
The NAHB expects the 30-year mortgage rate to decrease to around 6.5% by mid-2025 and fall below 6% by the end of 2026. They forecast an average of 6.65% for 2025 and 6.19% for 2026.
Coosa Valley Credit Union:
They anticipate the average 30-year fixed mortgage rate could settle between 5.5% and 6.5% by mid-2025.
J.P. Morgan:
J.P. Morgan predicts mortgage rates will remain above 6.5% in 2025.
Several factors could influence these predictions, including inflation, economic growth, and the Federal Reserve's monetary policy decisions. While some experts anticipate a downward trend, others caution against expecting the historic lows seen during the pandemic.