Mortgage interest rates are one of the most significant factors that influence the housing market & buyer purchasing power for any buyers that use a mortgage. After a Covid-induced unprecedented historic low where typical 30 yr rates fell below 3%, rates doubled in less than a year's time in 2022, going from 3.22% to over 7%. Since 2023 they've flucuated up and down between a 6.08% low and a 7.79% peak, with typical 30 yr rates as of 1/30/25 at 6.95% per Fannie Mae. Many as of 10/27/22 project that they'll go up further, but opinions on the subject vary greatly. Here I wanted to share multiple projections by the experts, my opinion, and some of the influencing contributing factors involved.
Image courtesy Freddie Mac
To see a chart including ARMs, go here.
Mortgage Rates 137.6% increase in under 1 year
Mortgage Rates haven't been this high in over 2 decades, but rates have been much higher before
Why rates are up: The Inflation Factor
Why rates are up: The 10 year U.S. Treasury Note Yield
The Federal Funds Rate's Impact on Mortgage Rates & Projections from the Fed
What will happen when rates do go down?
Problems with Googling "where will mortgage rates go"
Will Rates Go Down? Projections From Various Sources as of 1/25
I can no longer afford what I wanted. What should I do?
Word on the Housing Market for 2025
What all of this information as well as the housing market trends means for a sale
What all of this information as well as the housing market trends means for a purchase with no sale involved
Recent Inflation Rates:
Mortgage Related:
Overarching Related: