Curious about where interest rates are going? The chart below shows mortgage rate projections from several sources, including Fannie Mae, the Mortgage Bankers Association (MBA), the National Association of Realtors (NAR), and Wells Fargo. These projections give an idea of where interest rates might be heading through the end of 2025.
Key Takeaways from the Chart:
- Current Trends: Mortgage rates are expected to gradually decline over the next year.
- 2024 Q4: The average projected rate across all sources is 6.46%. This indicates that rates may remain elevated for the rest of 2024.
- 2025 Projections: By the end of 2025, the average rate is projected to be around 5.98%, with a gradual decrease each quarter.
- Lowest Projection: Wells Fargo predicts the lowest rates across all quarters, reaching 5.80% by Q4 2025.
- NAR’s Perspective: The National Association of Realtors consistently projects slightly higher rates compared to other sources, reflecting a more cautious outlook on the market.
Implications for Homebuyers and Sellers:
- For Homebuyers: If you’re planning to buy, waiting for rates to drop might save you money on your mortgage, but keep in mind that home prices could rise as more buyers enter the market with lower rates.
- For Sellers: If you’re considering selling, the current higher rates might limit the pool of buyers. However, as rates decrease, buyer interest could pick up, potentially driving up demand and home prices.
This trend suggests a market that could gradually become more favorable for both buyers and sellers as we move into 2025.
Curious about your home’s value in today’s market? Visit HomeValuePro.com. Have questions? Please text/call me at 916-508-5353 or email me at [email protected]. I’m always happy to help.