Mortgage rates expected to hold steady around 6.62% to 7.04% in 2025

From Yahoo Finance: 2025-04-22 15:06:00

Current interest rates for a 30-year fixed-rate mortgage are around 6.8%, while rates for a 15-year fixed-rate mortgage are about 6%. These rates are more than double the sub-3% rates seen during the pandemic. Experts suggest not waiting for rates to drop before buying a home, as little relief is expected in the coming year. Political turmoil, including tariffs, could make building materials more expensive.

Freddie Mac reported that rates for 30-year fixed-rate mortgages have stayed below 7% for 13 consecutive weeks. Mortgage rates are now inching back up near 7%, indicating little relief in the current economy. Rates on both 30-year and 15-year fixed-rate mortgages remain below the highs noted above, with occasional decreases over the past year.

Economists expect mortgage rates to hold steady for the remainder of the year, with the interest rate on a 30-year fixed-rate mortgage ranging from 6.62% to 7.04% so far in 2025. While 7% isn’t considered high compared to historical rates, it’s considerably lower than double-digit rates seen in the late 1970s and early 1980s.

To make today’s mortgage rates more affordable, consider rate buydown options, where you pay cash up front for a reduced interest rate on your mortgage. Economists predict steady mortgage rates for the rest of the year, with rates ranging from 6.62% to 7.04% so far in 2025. These rates are on par with historical trends, making now a good time to buy.



Read more at Yahoo Finance: When will mortgage rates go down? A look at 2025 rate predictions.