Mortgage Rates Steady Near 6.5% Amid Highest Inventory Increase in Five Years

Mortgage rates have stabilized around 6.5% for 30-year fixed loans, creating a mixed housing market environment in 2025. While increased inventory—the highest since 2020—offers more options and negotiating power for buyers, persistent high home prices and elevated borrowing costs continue to suppress affordability and limit market activity. Experts predict mortgage rates will remain in the mid-6% range through 2026, with no guaranteed Federal Reserve cuts to lower rates, making timing purchases based on rate changes uncertain. Mortgage professionals advise buyers to consider the broader financial picture beyond just rates, emphasizing cash flow and debt management over waiting for significant rate drops. Market uncertainty is high, with many prospective buyers hesitant to purchase even if rates fall below 6%, contributing to the lowest share of first-time homebuyers on record. Elevated mortgage rates are widely seen as a key factor restraining market momentum, despite recent improvements from previous highs.