Anticipated Interest Rates on Home Loans for the Following Half-Year: August to December 2025
In the current housing market, mortgage rates have shown a degree of stability, with the 30-Year Fixed Rate Mortgage (FRM) averaging 6.72% as of July 10, 2025, and the 15-Year FRM averaging 5.86%. This relative calmness is a marked contrast to last year's volatility, as the 30-year FRM has stayed below 7% for weeks [1].
The Mortgage Bankers Association anticipates rates to remain near 6.8% through September 2025, gradually decreasing to 6.7% by year-end [1]. This general forecast suggests that mortgage rates will hover in the mid-6% range, with some slight decreases expected. By December 2025, rates are forecasted to be around 6.3% to 6.5% [1].
More specific predictions come from various housing experts and financial institutions. For instance, Bankrate expects rates to remain in the 6s, with potential short-lived spikes above 7%, but not dipping below 6% [2]. Freddie Mac Data currently places the 30-year fixed rate mortgage at 6.72% [1].
For the third quarter of 2025, the National Association of Realtors predicts an average of 6.4%, while Fannie Mae anticipates 6.60%, Wells Fargo expects 6.65%, the National Association of Home Builders forecasts 6.75%, and the Mortgage Bankers Association predicts 6.80% [3]. The average prediction is around 6.64% [3].
The National Association of REALTORS (NAR) also predicts an average of 6.4% for the second half of 2025 [3]. If rates drop closer to 6.3%-6.5% in December 2025, there may be refinancing opportunities for homeowners [3].
Factors such as inflation, Federal Reserve policies, and the housing market will affect mortgage rates. Experts believe rates will stay in the mid-6% range, with no significant drops expected below 6% [1]. Fannie Mae predicts that 30-year mortgage rates will end 2025 at 6.5% and go down to 6.1% by the end of 2026 [3].
Investing in cash-flowing investment properties in strong rental markets is recommended in a high-rate environment [4]. Additionally, staying informed and seeking advice from mortgage experts is advised in this current high-rate environment [4].
The long forecast predicts an average of 6.59% for August 2025 and 6.29% for December 2025 [1]. New home sales might increase to address the supply gap caused by the mid-6% range mortgage rates [4].
Sources: [1] https://www.cnbc.com/2025/07/10/mortgage-rates-today-30-year-mortgage-rates-climb-to-6-72-percent.html [2] https://www.bankrate.com/mortgages/mortgage-rates/ [3] https://www.realtor.com/news/economy/mortgage-rates-forecast-for-2025/ [4] https://www.forbes.com/sites/zackfriedman/2025/06/01/how-to-buy-a-house-in-2025/?sh=797e283443d0
- The relative stability in mortgage rates, currently averaging 6.72% for the 30-Year Fixed Rate Mortgage, has attracted the attention of real-estate investors seeking opportunities in the market.
- With the Mortgage Bankers Association predicting rates to remain near 6.8% through September 2025, the real-estate market analysis suggests that it could be a good time for turnkey investment properties, especially in stable rental markets.
- Housing experts advise that investors should stay informed and seek advice from mortgage experts when navigating the current high-rate environment.
- As mortgage rates hover in the mid-6% range, with some slight decreases expected, investing in cash-flowing investment properties could yield profitable rental deals.
- If mortgage rates do drop closer to the 6.3%-6.5% range by December 2025, as predicted by some experts, there may be refinancing opportunities for homeowners investing in their primary residences.
- The long-term forecast indicates continued stability in the mortgage market, with rates projected to average around 6.59% in August 2025 and 6.29% by December 2025. This could potentially lead to an increase in new home sales to address the supply gap caused by the mid-6% range mortgage rates.
