When Will Mortgage Rates Come Down?
After years of rising mortgage rates and volatility throughout 2024, many are eager to know when rates might decline. While exact predictions are difficult, experts suggest that mortgage rates are likely to stabilize and ease slightly in 2025. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), notes that while rates remain elevated, they are expected to steady. However, the future of mortgage rates depends on key factors, including inflation, unemployment rates, and government policies. Lower inflation could lead to a decline in rates, whereas persistent inflation or economic instability could keep them high. With a new administration set to take office in January, shifts in fiscal and monetary policies may also impact rates.
Given the uncertainty, experts recommend focusing on what you can control: improving your credit score, saving for a down payment, and consulting with a trusted agent or lender to stay informed. By taking proactive steps, you can be better prepared for homeownership regardless of market fluctuations.
