Mortgage Rates Steady, High Trends Expected Ahead

Mortgage rates have shown minimal change recently, with the average 30-year mortgage rate remaining around 6.65% for the third consecutive week, according to Freddie Mac. The National Association of Realtors (NAR) predicts that while mortgage rates will likely remain above 6% through 2026, they may gradually decrease to an average of 6.4% in 2025. Despite these predictions, the current high rates are keeping home buying activity muted, with recent applications for home purchases showing only a slight uptick. Additionally, Rightmove's data indicates that rates for various fixed-term mortgages are stable or slightly lower compared to last year, but still reflect the ongoing impact of economic factors on the housing market. Analysts suggest that while a decrease in inflation may provide some relief, high interest rates are expected to persist due to national debt concerns and economic uncertainties. Overall, the outlook for homebuyers remains cautious as they navigate a challenging market environment.