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How low could mortgage rates fall by the end of 2025? Experts weigh in
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Mortgage borrowers have finally started to see some relief. Thanks to a Federal Reserve rate cut and falling 10-year Treasury yields, the average rate on 30-year loans has hovered in the mid to low 6% range in recent weeks — down from the nearly 7% rate seen at the start of the year.
But rates are always in flux. And with the Fed meeting two more times before the year is up — not to mention stubborn inflation — a lot could still happen to mortgage rates in the final months of 2025.
Mortgage Rates Won’t Fall Below 6% Anytime Soon, Top Economist Says in Grim Forecast
Mortgage rates could remain stuck above 6% for the next several years, according to newly released projections from the economists at the Mortgage Bankers Association.
MBA Chief Economist Mike Fratantoni presented the forecast at the group's annual conference in Las Vegas on Sunday, projecting that 30-year fixed mortgage rates will remain roughly in the range of 6% to 6.5% through the end of 2028.
"As we move over the next couple of years, we think it's more likely that long [term] rates are going to go up rather than down, given the fiscal pressures on the economy," Fratantoni told the conference, referring to the impact of rising federal deficits on bond markets.
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