Page 8 - Spring-2025-Sellers-Guide

Expert Forecasts for the

2025 Housing Market

Thinking about moving and wondering what’s in store for the housing
market this year? And more specifically, what it all means for you if you
plan to sell your house? Here’s what the experts say lies ahead.

Will Mortgage Rates Come Down?

Everyone’s keeping an eye on mortgage rates and waiting for them to come down. So, the
question is really: how far and how fast? The good news is they’re projected to ease a bit in
2025. But not by much. That means you shouldn’t expect to see a return of 3-4% mortgage rates.
And the other experts agree. They’re forecasting rates could settle in the mid-6% range by the
end of the year (see chart below):

Mortgage Rate Projections

30-Year Fixed Rate, As of 2/20/2025

Average of
Quarter Fannie Mae MBA Wells Fargo
All Three

2025 Q1 6.90% 6.90% 7.10% 6.96%

2025 Q2 6.80% 6.90% 6.90% 6.86%

2025 Q3 6.70% 6.70% 6.65% 6.68%

2025 Q4 6.60% 6.50% 6.50% 6.53%

But you should remember, this will continue to change as new information becomes available.
Expert forecasts are based on what they know right now. And since everything from inflation to
economic drivers have an impact on where rates go from here, brace for some rate volatility.
Don’t get caught up in the exact numbers here and try to time the market. Instead, focus on the
overall trend and that even a small decline can help bring down your future mortgage payment.

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