Everyone wants to know what will happen with interest rates in 2025. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:
“Are we going to go back to 4%? Per my forecast, unfortunately, we will not. It’s more likely that we’ll go back to 6%.”
Other experts agree. Future rates could settle in the mid-to-low 6% by the end of 2025.
Other local lenders are expecting a more robust change in interest rates from 5.75% to 6% by the end of 2025. Overall, trying to time your purchase based on a specific interest rate is going to be very difficult. Likewise, a significant change in interest rates could bring additional competition on the buy side. What does this mean; looking for your home now provides a better chance to negotiate with less buyer competition. Likewise, sellers are willing to talk about possible interest rate buy downs to help you navigate 2025 and possibly refinance prior to your rate buy down expiring.
As your trusted Real Estate advisor, I will make sure you always have the latest data which directly affects the interest rate. Relying solely on the Fed rate cut is just one small piece of the puzzle. I pride myself on focusing on education, both for myself, and for my clients. Please continue to follow my monthly blog to learn more about the additional pieces in our economy that directly affect your current and future interest rate.
