Here’s What Buyers and Homeowners Need to Know Right Now

Mortgage rates have been on a rollercoaster the past few years — and if you’re planning to buy, sell, or refinance in 2025, you’re probably asking the same question everyone else is:

Where are rates really going?

You’ve seen the headlines. Some say rates are dropping soon. Others say they’ll stay high all year. Meanwhile, you’re stuck trying to make a decision that could impact your financial future — without a clear answer.

Let’s break it down and look at what’s actually driving rates in 2025, what the experts are forecasting, and what this means for you.

What’s Happening With Mortgage Rates Right Now?

As of early June 2025, mortgage rates are still hovering between 6.5% and 7% for a 30-year fixed loan, depending on the loan type and your credit. That’s down slightly from the peak in late 2023, but still much higher than what buyers saw during the ultra-low rate years of 2020–2021.

Why haven’t rates dropped faster?

It all comes down to inflation, the Federal Reserve, and investor confidence. The Fed has signaled that rate cuts may come later in 2025, but only if inflation continues to slow.

Until then, rates may remain range-bound — bouncing between small increases and decreases based on economic data.

📌 According to Mortgage Bankers Association’s May 2025 forecast, the average 30-year mortgage rate may dip to around 6.3% by the end of the year, but major drops are unlikely unless inflation sharply cools.
Source: MBA Mortgage Finance Forecast

Will Rates Drop Significantly This Year?

Not likely.

Most expert forecasts agree that rates may decline slightly in the second half of 2025, but not dramatically. Here’s what a few key organizations are predicting:

• Fannie Mae expects 30-year fixed rates to fall to around 6.4% by Q4 2025

• Realtor.com projects mortgage rates will hover in the 6.5% range most of the year

• Goldman Sachs has suggested rates could stay in the 6–7% range into 2026

In other words, we’re probably not going back to 3% rates anytime soon — but we’re also not stuck in the 8% range from last fall either.

So... Should You Wait or Act Now?

Here’s the deal: timing the market perfectly is almost impossible. Mortgage rates are just one part of the picture. Home prices, inventory, your job situation, and your long-term goals all matter too.

In many cases, waiting for rates to fall could actually cost more if home prices rise or if you miss out on the right property.

And here's a key tip: you can always refinance later if rates do drop more significantly.

What matters more than the rate itself is locking in a monthly payment that works for your budget — and getting into a home that fits your life.

What’s the Smart Play in 2025?

If you're buying:

• Get pre-approved so you know exactly what’s possible

• Explore rate buydown options or lender credits

• Look into programs with flexible guidelines or lower down payments

If you already own and are considering refinancing:

• It may still be worth exploring if you’ve got equity and a higher current rate

• A cash-out refinance or HELOC could also help consolidate debt or fund improvements, even if the new rate isn’t drastically lower

Final Word: Focus on the Long Game

Trying to predict the exact rate you’ll get in six months is like predicting next week’s weather. But making a clear plan based on today’s options? That’s a power move.

If you’re unsure, don’t guess. Let’s look at your real numbers and your goals together. You’ll walk away with a strategy, clarity, and options — not just more headlines.