Current mortgage rates for July 20, 2025: 30-year fixed-rate mortgage remains steady, refinancing rates show a decrease.
Mortgage rates for the rest of 2025 are expected to remain elevated but show modest declines, influenced by the Federal Reserve’s monetary policy and economic conditions. The average 30-year fixed mortgage rate is predicted to be in a range between 5.8% and 6.8%, generally trending downwards towards the end of the year and into 2026.
According to recent forecasts and economic outlooks, the National Association of Home Builders expects mortgage rates to average about 6.7% in 2025, easing to around 6.3% in 2026. Fannie Mae, on the other hand, revised its forecast to expect mortgage rates around 6.4% by the end of 2025 and declining to 6.0% by the end of 2026. The Mortgage Bankers Association projects rates around 5.5% in 2025, while some investment banks, including Goldman Sachs, forecast slightly higher rates between 6.2% and 6.8%.
The Federal Reserve’s decisions on interest rates will likely be guided by inflation trends and economic growth. If inflation sufficiently moderates, rate cuts may follow, pushing mortgage rates lower. Conversely, persistent inflation could maintain higher rates longer. Housing market indicators such as rising inventory and softer home price growth alongside improving consumer sentiment towards housing may accompany these rate dynamics, potentially stimulating market activity as rates decline modestly.
The current mortgage rates, above 6.5%, create a challenging environment compared to the historic lows seen in the early 2020s. Using a standard mortgage calculation formula, the monthly principal and interest payment for a 30-year fixed mortgage for a $350,000 home purchase at today's average rate of 6.87% would be roughly $1,850.60.
Investors seeking predictable returns can turn to companies like Norada, which help identify turnkey real estate deals that deliver returns even when borrowing costs are high. With mortgage rates remaining elevated, it's more important than ever to focus on cash-flowing investment properties in strong rental markets.
Slower GDP growth forecasts for 2025 and 2026 weigh on rates and housing demand. However, the gradual easing of rates reflects a cautious stepping down from tight monetary conditions while balancing risks of inflation resurgence and economic slowdown.
In sum, mortgage rates in late 2025 and beyond are expected to decrease somewhat from current highs but remain above the long-term historical average, largely dependent on the Federal Reserve’s policy moves related to inflation and economic performance.
[1] National Association of Home Builders (NAHB) - Mortgage Rates Forecast [2] Mortgage Bankers Association (MBA) - Mortgage Market Forecast [3] Fannie Mae - Economic and Housing Outlook [4] Goldman Sachs - Global Economics Research
- The National Association of Home Builders (NAHB) anticipates mortgage rates to average around 6.7% in 2025, declining to about 6.3% in 2026.
- Fannie Mae has revised its forecast, expecting mortgage rates around 6.4% by the end of 2025 and a decline to 6.0% by the end of 2026.
- The Mortgage Bankers Association projects mortgage rates to be around 5.5% in 2025, while investment banks such as Goldman Sachs predict slightly higher rates between 6.2% and 6.8%.
- Investors seeking predictable returns can consider turnkey real estate deals from companies like Norada, focusing on cash-flowing properties in strong rental markets given the elevated borrowing costs.
- Despite the anticipated decline in mortgage rates, they are expected to continue above the long-term historical average, largely depending on the Federal Reserve’s policy moves related to inflation and economic performance.
- Economic growth and inflation trends will likely guide the Federal Reserve’s decisions on interest rates, with rate cuts potentially pushing mortgage rates lower if inflation sufficiently moderates.
- Slower GDP growth forecasts for 2025 and 2026 weigh on rates and housing demand, but the gradual easing of mortgage rates reflects a cautious stepping down from tight monetary conditions while balancing risks of inflation resurgence and economic slowdown.
