Mortgage rates are expected to decline slightly in 2024 and 2025, though not dramatically returning to pre-pandemic levels.

In 2024, mortgage rates for a 30-year fixed mortgage are projected to remain between 6.6% and 6.8%, as inflation eases and the Federal Reserve potentially reduces its benchmark interest rates. The National Association of Home Builders (NAHB) anticipates that rates will average around 7.04% in 2024 before declining in 2025.

By 2025, experts, including the Mortgage Bankers Association (MBA), predict that rates may decrease further, reaching 5.9% to 6.1% for 30-year fixed mortgages. This expected decline would result from stabilizing inflation and more accommodating Federal Reserve policies.

While a drop in rates is anticipated, homebuyers should still expect rates to be higher than the historically low levels seen in 2020 and 2021, making affordability a continuing challenge for many.

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