Mortgage rates are expected to remain elevated for the rest of the year, experts predict.
Mortgage rates fell closer to 6% in September ahead of the long-awaited Federal Reserve rate cut — a relief for buyers who had been waiting on the sidelines. However, that relief was short-lived. Rates began rising again in early October and purchase applications shrank 10% that month, according to the latest from Freddie Mac.
In the hours following President-elect Trump’s win, rates touched a recent high of 7.13%. Now, rates are hovering just under 7%. Bankrate chief financial analyst Greg McBride expects them to stay there the rest of the year.
It’s important to note the President nor the Fed determines mortgage rates. Mortgage rates react to a number of economic forces but generally follow the same directional pattern as interest rates.
If the economy were to keep moving in the same direction in 2025, we should see lower mortgage rates gradually. But how the economy plays out depends on what policies Trump prioritizes — and to what degree he enacts them, per Yahoo Finance.
For those reasons, it’s impossible to predict with certainty what will happen to mortgage rates next year. Right now, forecasts show lower rates on the horizon, but not without some volatility.
While there may be some uncertainty rates, don’t let it stop you from making your move. With the support of our experienced agents and trusted lender partners, we are ready to navigate the market to your advantage so you can move forward with confidence.
