Mortgage News and Interest Rates

Mortgage rates inch down slightly: As of January 4, 2025, the 30-year fixed mortgage rate has decreased to 6.67%, while the 15-year fixed rate is now at 6.00%. Experts suggest that rates may continue to decline modestly throughout 2025, making it a potentially good time for homebuyers to start searching for properties. 1

2025 mortgage rate expectations: Predictions for 2025 indicate that mortgage rates will remain elevated, with the average 30-year fixed rate around 6.5%. The Federal Reserve's cautious stance on rate cuts due to ongoing inflation suggests that significant drops in rates are unlikely, and consumers should prioritize affordability in their borrowing decisions. 2

Mortgage rates rise despite Fed cuts: Despite the Federal Reserve's recent interest rate cuts, mortgage rates have risen, with the current average for a 30-year fixed loan at 6.95%. Experts believe that economic factors will keep rates high, and while a slight decrease is expected in 2024, caution is advised regarding future rate changes. 3

Mortgage rates reach highest levels since July 2024: As of January 3, 2025, the average 30-year fixed mortgage rate is 6.91%, and the 15-year fixed rate is 6.13%. This marks an increase for three consecutive weeks, with experts suggesting potential benefits to waiting until spring for home purchases due to expected inventory increases and possibly lower rates then. 1, 4

Predictions for mortgage rates in 2025: Economists anticipate that mortgage rates will hover around 6.5% throughout 2025, with fluctuations between 6% and 7%. The Federal Reserve's recent rate cuts may influence these rates, but uncertainty remains due to economic conditions and the impact of the new presidential administration. 3, 2

Federal Reserve's influence on mortgage rates: The Federal Reserve has indicated it will cut short-term rates by half a percentage point throughout 2025, which has led to a temporary spike in mortgage rates. Fannie Mae predicts that rates will remain above 6% for the year, but a decrease in buyers could lead to more inventory for home buyers by the end of 2025. 2

Mortgage rates increase to start 2025: As of January 1, 2025, the 30-year fixed mortgage rate has risen to 6.70%, with the 20-year and 15-year rates also increasing. Experts suggest that while rates may decrease gradually throughout the year, significant drops are uncertain due to economic factors and the impact of the new presidential administration 1, 2.

High mortgage rates persist despite Fed cuts: Mortgage rates remained elevated throughout 2024, with 30-year fixed rates consistently above 6%. Although the Federal Reserve has been cutting interest rates, mortgage rates have not followed suit, largely due to high 10-year Treasury bond yields driven by inflation concerns and economic policies under President-elect Trump 2.