As the US economy navigates mixed signals, experts weigh in on the possibility of mortgage rates dropping below 6% by 2025. Industry professionals offer varying predictions, with some suggesting a gradual decline and others warning that current rates might be here to stay.
Chris Heller, president of Movoto.com, believes a drop below 6% is possible but not imminent. Tomo Mortgage’s senior vice president Emanuel Santa-Donato suggests historical patterns make it unlikely for mortgage rates to fall below 6%. Meanwhile, Steven Parangi, a licensed mortgage loan originator, predicts moderate probability and sees rates staying between 6% and 7%.
For rates to drop, inflation would need to show sustained moderation, prompting the Federal Reserve to ease monetary policy. A slowing economy could also push rates lower, but instability or more inflation might occur. The incoming administration’s potential tax cuts could boost growth, making big rate cuts less likely.
However, several factors could keep mortgage rates at current levels or drive them higher: stubborn inflation, supply chain problems, global tensions, and a strong job market. Ultimately, the decision to buy a home depends on finding a fair price with an affordable payment, rather than relying solely on rate predictions.
Experts recommend preparing for homeownership by working with professionals who understand your local market, connecting with lenders, and meeting with real estate agents. By building this network now, you’ll be better prepared to move swiftly when the right opportunity arises, regardless of mortgage rates.
Source: https://www.cbsnews.com/news/will-mortgage-rates-fall-below-6-in-2025-what-experts-say