current mortgage rates: decrease in 30-year fixed-rate mortgage to 6.73%, 15-year fixed-rate mortgage also drops to 5.71%
In the real estate market, mortgage rates play a significant role in determining affordability for homebuyers. As we approach July 2025, the latest predictions suggest that **mortgage rates are expected to remain elevated but gradually decline slightly over the year**.
Key highlights include:
- For July 2025, the average 30-year fixed mortgage rate is predicted to hover around **6.5% to 6.8%**. Sources like Long Forecast project around 6.71%, the Mortgage Bankers Association (MBA) at 6.7%, and Fannie Mae expecting about 6.1% by year-end[2][3].
- Fannie Mae and Wells Fargo expect rates to close 2025 around **6.1% to 6.5%**, signalling modest declines from mid-year levels but remaining well above the historic lows of around 2.65% seen during the COVID-19 pandemic[1][2].
- Experts like Jay Crowell from Cornerstone Home Lending and Ralph DiBugnara from Home Qualified expect rates to **moderate rather than sharply drop**, citing economic uncertainties including inflation, trade tariffs, and geopolitical risks as factors keeping rates from falling quickly[3].
- The Federal Reserve’s stance is cautious and "wait-and-see," with possible quarter-point rate cuts considered but not guaranteed. Moreover, any Fed rate cuts may not necessarily translate to lower mortgage rates, as mortgage rates have been influenced by bond yields and investor behaviour independently[1][3].
- Factors such as tariffs and inflation concerns could push mortgage rates higher, or at least prevent significant rate reductions. Tariffs may lead to inflationary pressures, elevating Treasury yields and subsequently mortgage rates[1].
- For shorter-term forecasts, the 15-year fixed mortgage rate is predicted to be in the **5.4% to 5.9% range in mid-2025**, starting with a slight decline in July 2025 before stabilising[5].
In summary, **mortgage rates in July 2025 are expected to be just below current levels but still relatively high by historical standards, with gradual declines likely depending on economic conditions and Federal Reserve decisions**. Homebuyers should monitor Fed announcements and economic indicators closely to time their mortgage decisions optimally[1][2][3].
It is worth noting that in a high-rate environment, investing in cash-flowing investment properties in strong rental markets becomes more important. For instance, Norada helps investors identify turnkey real estate deals that deliver predictable returns even when borrowing costs are high.
References: [1] https://www.forbes.com/sites/moneybuilder/2025/06/01/mortgage-rates-are-expected-to-remain-high-for-the-rest-of-2025/?sh=76d3994f5c8f [2] https://www.cnbc.com/2025/06/01/mortgage-rates-for-30-year-fixed-loan-673-percent.html [3] https://www.realtor.com/news/trends/mortgage-rates-forecast-2025/ [4] https://www.longforecast.com/forecasts/Mortgage-Rates/United-States/2025-07 [5] https://www.fanniemae.com/content/dam/FannieMae/documents/research-and-analysis/housing-forecasts/2025-06-housing-forecast-summary.pdf
- In the real estate market approaching July 2025, mortgage rates are expected to remain somewhat elevated, with an average 30-year fixed mortgage rate predicted to hover around 6.5% to 6.8%.
- Fannie Mae and Wells Fargo predict rates to close 2025 around 6.1% to 6.5%, indicating a modest decline from mid-year levels but still significantly above the historic lows seen during the COVID-19 pandemic.
- Experts expect rates to moderate rather than sharply drop, considering economic uncertainties like inflation, trade tariffs, and geopolitical risks as factors hindering rapid declines.
- The Federal Reserve takes a cautious stance, with quarter-point rate cuts considered but not guaranteed. Any Fed rate cuts may not result in lower mortgage rates due to influences from bond yields and investor behavior.
- Factors such as tariffs and inflation concerns could potentially push mortgage rates higher or prevent significant rate reductions.
- In a high-rate environment, investing in cash-flowing investment properties in strong rental markets assumes importance, as seen with turnkey real estate deals from Norada that deliver predictable returns despite high borrowing costs.
- As mortgage rates are predicted to remain high in July 2025, monitoring Federal Reserve announcements and economic indicators becomes crucial to make informed mortgage decisions.
