Current Mortgage Rates for July 24, 2025: General Decrease, 30-Year Fixed-Rate Mortgage at 6.86%
With mortgage rates remaining elevated this year, investors and homebuyers are keeping a close eye on the housing market. Here's a summary of the forecasts for mortgage rates for the remainder of 2025 and into 2026, as predicted by top housing experts:
Forecasts for 2025 and 2026:
- Fannie Mae: Mortgage rates are expected to end 2025 at 6.4% and decline to 6.0% by the end of 2026. This reflects a downward revision from previous forecasts of 6.5% and 6.1%, respectively.
- Mortgage Bankers Association (MBA): Forecasts suggest that rates will stabilize around 6.3% by the close of 2026, indicating a slight downward trend from current levels.
- National Association of Realtors (NAR): Lawrence Yun, the chief economist, is optimistic about the housing market, expecting mortgage rates to be around 6.1% by the end of 2026.
- National Association of Home Builders (NAHB): Predicts rates might be as low as 5.94% by the end of 2026.
- Freddie Mac and Morgan Stanley: While specific forecasts from these entities are not detailed in the available data, Freddie Mac generally watches similar trends as Fannie Mae and other major institutions. Morgan Stanley's views might align with broader market expectations but are not explicitly mentioned.
- Realtor.com: No specific forecast is provided in the search results, but typically, Realtor.com follows trends similar to those of major housing market analysts.
Overall, mortgage rates are expected to gradually decline or stabilize in the mid to lower 6% range by the end of 2026, influenced by economic conditions and Federal Reserve policies.
Morgan Stanley strategists suggest a possible decline in rates linked to anticipated lower Treasury yields if economic growth slows. After peaking around 6.8% in mid-2025, analysts expect rates to decline slowly, potentially reaching the 5% range by 2028.
The Mortgage Bankers Association expects 30-year mortgage rates to hover near 6.7% through late 2025 and gently ease to about 6.3% by 2026. Fannie Mae's outlook foresees mortgage rates settling around 6.5% in 2025 and dropping to approximately 6.1% in 2026.
The Federal Reserve's next meeting on July 30, 2025, will be closely watched for rate guidance. As the housing market continues to adjust slowly, timing and personal finances are more critical than ever for buyers and investors.
- Investors and homebuyers, keeping a close eye on the housing market, might find potential turnkey realestate deals with mortgage rates expected to end 2025 at 6.4% and decline to 6.0% by the end of 2026, as predicted by top housing experts.
- For those eyeing personal-finance investments in the realestate sector, the slight downward trend in mortgage rates indicated by the Mortgage Bankers Association could prove beneficial for rental and other mortgage-based deals.
- The forecasted decline in mortgage rates by Morgan Stanley, linked to anticipated lower Treasury yields if economic growth slows, could provide an opportunity for investing in realestate, potentially reaching the 5% range by 2028.
- As the Federal Reserve's next meeting on July 30, 2025, approaches, the rate guidance given will play a crucial role in financing any realestate deals, given the slow adjustment of the housing market.
- With the gradual decline or stabilization of mortgage rates in the mid to lower 6% range by the end of 2026, as influenced by economic conditions and Federal Reserve policies, investors may find themselves in a better position to secure financing for realestate investments.
- In the forecast for 2025 and 2026, the National Association of Realtors predicts mortgage rates to be around 6.1% by the end of 2026, making it an intriguing time for those interested in investing in realestate and personal finance.
