Mortgage Rates Rise Near 7% Amid Trade Optimism, Inflation Risks

Mortgage rates in 2025 have hovered around 6.7% to 6.8% for a 30-year fixed rate mortgage, influenced by economic factors such as Federal Reserve policies, inflation, and trade developments like the new U.S.-U.K. trade deal. The Federal Reserve has kept short-term interest rates steady, but concerns over inflation and new tariffs may delay rate cuts, keeping mortgage rates elevated and negatively impacting housing market activity. Financial expert Dave Ramsey predicts that if mortgage rates fall by a point or two, a surge in homebuyer demand could reignite the housing market, which has seen low sales and increased inventory due to affordability challenges. Despite rising mortgage rates and economic uncertainties, Ramsey believes home prices may not decline significantly because demand still outpaces supply in many areas. Long-term forecasts suggest mortgage rates will likely trend upward over the coming years, pressured by government fiscal demands and market dynamics, which could continue depressing property prices and buyer activity. Overall, while there is cautious optimism for a market rebound with lower rates, persistent economic and policy challenges keep the housing market subdued in the near term.