Current 30-Year Fixed Refinance Mortgage Rate Experiences 7 Basis Point Increase as of July 25, 2025
Mortgage rates have been on a downward trend since 2024, and this trend is expected to continue through 2026. After peaking above 7% in 2023 due to Federal Reserve tightening and inflation, rates have begun to ease.
In mid-2025, mortgage rates are currently averaging near 6.8%, but forecasts indicate they will ease somewhat in the coming months and into 2026. The Federal Reserve's cautious approach keeps the door open for rate cuts, but those will likely be moderate and delayed into late 2025 or beyond.
Looking ahead to 2026, major forecasts expect rates to decline slightly more. Fannie Mae projects the 30-year fixed mortgage rate to close 2026 at approximately 6.1%, down from 6.5% at the end of 2025. The Mortgage Bankers Association (MBA) predicts somewhat similar figures around 6.3% to 6.4%.
Some forecasts even expect mortgage rates to dip below 6% around mid-2026, reaching about 5.83%, although rates might stabilize or slightly rise again by the end of the year to near 5.86%.
The near-term expectation is for mortgage rates to remain elevated but gradually decline from around 6.5-6.7% in mid-2025 to just above or below 6% by late 2026, with some variation depending on economic conditions and Fed actions.
In a high-rate environment, it's important to focus on cash-flowing investment properties in strong rental markets. Companies like Norada can help investors identify turnkey real estate deals that deliver predictable returns, even when borrowing costs are high.
References:
[1] Fannie Mae Economic & Strategic Research (ESR) Forecast (June 2025). Retrieved from https://www.fanniemae.com/resources/file/research-and-analysis/housing-forecasts/2025/06/202506-esr-forecast-summary.pdf
[2] Mortgage Bankers Association (MBA) Forward Look (June 2025). Retrieved from https://www.mba.org/files/Content/2193/202506_Forward_Look.pdf
[3] Freddie Mac Primary Mortgage Market Survey (PMMS) (June 2025). Retrieved from https://www.freddiemac.com/pmms/archive/202506
[4] National Association of Realtors (NAR) Press Release (June 2025). Retrieved from https://www.nar.realtor/newsroom/nar-forecasts-modest-decline-in-mortgage-rates-over-the-next-year
- The easing mortgage rates could create opportunities for personal-finance growth through real-estate investing in the latter half of 2025.
- With the forecasted decline in mortgage rates, financing turnkey rental properties might become more affordable, resulting in higher investment returns.
- In the real-estate market, the expected reduction in mortgage rates could stimulate business growth for finance and mortgage companies.
- As mortgage rates continue to decrease, prospective home buyers and investors may find it easier to secure financing and enter the real-estate market.
- The forecasted growth in rental market demand, combined with declining mortgage rates, might create a profitable situation for real-estate investors focusing on cash-flowing properties.
- By analyzing market trends and forecasts, investors can make informed decisions about investment in real estate and maximize their returns as mortgage rates decrease.
- The cautious approach by the Federal Reserve, along with the projected moderation in inflation, may result in an extended period of reduced mortgage rates and continue to influence the investment landscape.
- The slight decline in mortgage rates predicted for 2026 could mark a significant turning point in the real-estate market, providing opportunities for growth in both investment and personal finance.
