As we move into 2025, we are looking at a time of changes and uncertainties. If you are thinking about buying a home, you may be wondering how you should time your home purchase with respect to mortgage rates. Let’s take a look at mortgage rate projections for 2025.
What is Happening With Mortgage Rates Now?
To start with, we can take a look at what mortgage rates are doing now. CNBC reports, “The average 30-year fixed-rate mortgage in the U.S. slightly dipped to 6.78% for the week ending Nov. 14, barely changed from 6.79% a week prior, according to Freddie Mac data via the Federal Reserve.”
This is an improvement in the stability of mortgage rates, which likely results in part from the presidential election having ended. Regardless of who won or lost, the outcome being settled was likely to produce this stabilizing effect.
Predictions for 2025 Mortgage Rates
Now that we have discussed what mortgage rates are doing as we approach the end of 2024, we can take a look at what is expected for the year ahead.
Fannie Mae maintains a useful housing forecast chart that gives us some insights. On it, you can see mortgage rates for 30-year fixed rate mortgages for 2023 and 2024, along with predictions for 2025. The chart also includes information on housing starts.
The predictions give homebuyers reason to be optimistic. You will see looking at this chart that Fannie Mae expects that mortgage rates will be in the 6% range and just below it throughout 2025. Over the course of the year, Fannie Mae predicts that rates will gradually decrease, reaching 5.70% by end of 2025.
Keep in mind that these are only predictions. It is possible for the real-life mortgage rates to differ from them. We will have to see what happens as 2025 goes on.
Plus, it is important to note that there has perhaps never been a time of greater uncertainty with respect to US history. If the new administration makes the types of wholesale changes to the country’s political and economic systems that they have advertised, it is hard to predict what the results will be. We could see major impacts in housing, food prices, and other goods and services, as well as in the labor market.
Buy a Home in Florida
While it can be difficult to time a home purchase, there are some benefits to moving forward with buying a home soon, instead of waiting. You begin building equity, and you get to profit from any rise in the value of your home over a longer period of time.
Whether you decide to buy now or wait until some point later in 2025, PLC can connect you with a home loan that features competitive mortgage rates and terms. If you are ready to get started, please give us a call at 954-840-8811. We work with homebuyers and homeowners throughout South Florida.
