Buying a home has been tricky lately, with mortgage rates stuck between 6% and 7%.
Many are hoping rates will fall below 6% in 2025 to make homes more affordable.
Here’s what experts are saying and how it might affect your plans.
What Could Make Mortgage Rates Drop?
Mortgage rates might go down if inflation how much prices rise keeps cooling off.
If the government sees inflation staying low, they could lower interest rates, which helps mortgage rates drop.
Another thing that could help is a slowing economy. Sometimes, when the economy isn’t growing as much, rates go down to encourage people to spend. But experts warn that this isn’t a sure thing.
Why Rates Could Stay the Same or Go Higher
If inflation sticks around or prices go up because of things like supply chain problems or global issues, mortgage rates might stay where they are or even rise.
A strong job market, which is usually a good thing, could also keep rates higher.
Should You Wait to Buy a Home?
Experts agree: Don’t wait just for mortgage rates to change. Focus on finding a home you love that fits your budget.
Make sure your monthly payment leaves room for savings and unexpected expenses.
Start preparing now by checking out homes in your area, looking at your finances, and talking to a lender about your options.
The Bottom Line
No one knows for sure if mortgage rates will fall below 6% in 2025. But being ready is more important than guessing.
Work with real estate agents and lenders who understand your market and loan options.
When the time is right, you’ll be ready to buy no matter where rates are.