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Mortgage Rates Decline Slightly but Remain a Challenge for Buyers

Experts predict rates will stay between 6% and 7% in 2025, while economic uncertainty and rising home prices continue to strain affordability.

Real estate agent Jake Bluvstein at an open house in Columbus. 01 homes
A sign is posted in front of a home for sale on August 07, 2024, in San Rafael, California.
The dip in mortgage rates should entice both buyers and sellers back into the market, Zillow senior economist says.
FILE - For sale and sold signs are seen in storage at a real estate office on Tuesday, Oct. 15, 2024, in Portland, Ore. (AP Photo/Jenny Kane, File)

Overview

  • The average 30-year mortgage rate has dropped to 6.76%, its lowest since December 2024, but remains far from pre-pandemic lows.
  • Economic slowdown and uncertainty over tariffs from the Trump administration are influencing mortgage rate trends, with inflation still a concern.
  • Housing inventory has increased, offering buyers more choices, but affordability remains constrained by high rates and rising prices.
  • Experts anticipate mortgage rates will hover between 6% and 7% through 2025, with significant rate reductions unlikely in the near future.
  • First-time buyers may benefit from falling rents and seller concessions, but overall home sales are expected to see only modest growth this year.