What's the mortgage interest rate forecast for fall 2025?
The housing market over the past few years has been challenging for prospective homebuyers. As home prices and mortgage interest rates remain high, first-time homebuyers face a one-two punch, making it difficult to break into real estate and get a place of their own.
Average mortgage interest rates are 6.58% on a 30-year fixed-rate mortgage as of August 21, based on Freddie Mac data. While that rate was flat from the week before, overall, the summer brought some welcome news: a mortgage interest rate drop. At the start of summer, mortgage rates stood at 6.85%, marginally higher than where they are now. But where are mortgage rates headed for fall?
The Federal Reserve is meeting again in September to discuss the future of the federal funds rate, to help manage inflation and employment, which could have an impact on mortgage rates. We spoke to several mortgage experts about the mortgage interest rate forecast for fall 2025 and what to expect.