Mortgage Rates Stay High Amid Economic, Political Uncertainty

Mortgage and refinance rates have remained elevated in 2025, averaging between 6.5% and 7%, with only modest declines in recent weeks. These rates are shaped by Federal Reserve policy, which included several rate cuts in 2024, as well as persistent inflation, economic data, and political uncertainty tied to the Trump administration’s fiscal and trade policies. Most experts expect mortgage rates to remain above 6.5% for much of the year, with state-level variations and lender competition further influencing rates for individual borrowers. Refinancing is generally only advantageous for borrowers seeking to change loan terms or types, as those with rates below 6% are unlikely to benefit from a rate reduction. Home equity lines of credit remain available but typically carry higher rates than primary mortgages. The future direction of rates depends on key economic indicators such as inflation and unemployment.