Close Menu
  • Home
  • Finance News
  • Personal Finance
  • Investing
  • Cards
    • Credit Cards
    • Debit
  • Insurance
  • Loans
  • Mortgage
  • More
    • Save Money
    • Banking
    • Taxes
    • Crime
What's Hot

Trump bill helps wealthy, hurts low earners: Yale report

July 1, 2025

What’s next after strong bank stress tests?

July 1, 2025

High-yield savings rates today: June 30, 2025 | Top APY bumps up to 4.44%

June 30, 2025
Facebook X (Twitter) Instagram
Facebook X (Twitter) Instagram
Smart SpendingSmart Spending
Subscribe
  • Home
  • Finance News
  • Personal Finance
  • Investing
  • Cards
    • Credit Cards
    • Debit
  • Insurance
  • Loans
  • Mortgage
  • More
    • Save Money
    • Banking
    • Taxes
    • Crime
Smart SpendingSmart Spending
Home»Personal Finance»January Mortgage Interest Rates Forecast
Personal Finance

January Mortgage Interest Rates Forecast

January 5, 2025No Comments3 Mins Read
Facebook Twitter LinkedIn Telegram Pinterest Tumblr Reddit WhatsApp Email
January Mortgage Interest Rates Forecast
Share
Facebook Twitter LinkedIn Pinterest Email

Mortgage rates might ride up and down in January and finish lower than where they started, like a road trip that begins in the mountains and ends at the beach.

January is dominated by a change in presidential administrations, which dials up the uncertainty. “When things are more uncertain, rates tend to be more volatile,” says Chen Zhao, head of economic research for real estate brokerage Redfin.

One element of uncertainty comes via the Federal Reserve, which hinted in December that it will cut short-term rates just half a percentage point throughout 2025. That surprised investors who previously had expected the Fed to cut rates twice that much this year.

The Fed’s revised projections led to a jump in mortgage rates. When mortgage rates climb rapidly in response to the unexpected, they sometimes overdo it before falling back down. Thus the prediction that mortgage rates will be lower at the end of January than at the beginning.

What other forecasters predict

Zhao, from Redfin, said the day before the December Fed meeting that she expects mortgage rates to remain relatively unchanged this month.

Rob Cook, vice president and chief marketing officer for Discover Home Loans, listed a couple specific factors for uncertainty: the size of the federal deficit and the path of inflation. “Those things play into the market,” he says.

In mortgage securitizer Freddie Mac’s weekly rate survey, the 30-year mortgage averaged a little over 6.6% in 2024’s fourth quarter. Fannie Mae (another mortgage securitizer) predicts that rates won’t change much in the first quarter of this year.

See also  Bad Money Habits and How to Avoid Them

Fannie Mae has a discouraging note for home buyers who yearn for yesteryear’s rates: “We forecast the average mortgage rate to remain above 6 percent in 2025,” the company said in a statement.

What could be ahead for buyers and sellers

There’s some sorta-good news lurking in that forecast of rates remaining above 6%: Elevated rates means fewer buyers willing to make offers. In turn, that means homes linger on the market — and the remaining home buyers have more properties to choose from.

By the end of 2025, “we should basically be back to the old normal levels of inventory,” said Mike Simonsen, founder of analytics firm Altos Research, in a weekly commentary on YouTube. He was talking about pre-pandemic inventories of homes for sale.

If Simonsen is correct, buyers in late 2025 will have their pick of about 300,000 more homes than they had toward the end of 2024.

Explore mortgages today and get started on your homeownership goals

Get personalized rates. Your lender matches are just a few questions away.

Won’t affect your credit score

What I predicted for December and what happened

At the end of November, I wrote that 30-year mortgage rates would be relatively unchanged in December, staying in a range between 6.75% and 7%. Rates were below that level in the first half of the month, then crept slightly above 7% Dec. 26 and 27 before easing back. The 30-year mortgage averaged 6.73% in December and 6.68% in the fourth quarter in SS’s daily rate survey.

See also  You’re Retired and Need Cash— Is a HELOC the Answer?

The 30-year mortgage averaged 6.68% in 2024, down from 6.91% in 2023.

Source link

forecast interest January mortgage rates
Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
Previous ArticleE-Commerce platforms vs. DIY sites: Which is best for you?
Next Article The “Very Obvious” Trend That Could Define 2025

Related Posts

High-yield savings rates today: June 30, 2025 | Top APY bumps up to 4.44%

June 30, 2025

How Treasury Bills Generate Returns

June 30, 2025

Trump Wants Interest Rates Cut to 1%. What Would That Mean for Mortgage Rates?

June 30, 2025
Add A Comment
Leave A Reply Cancel Reply

Top Posts

For investment banks, a ‘wait and see’ attitude on AI is untenable

January 13, 2025

Mortgage Rates Fall Slightly, But Borrowers Need More Relief

June 5, 2025

Your Brain On Risk: It’s Not Good

May 10, 2025
Ads Banner

Subscribe to Updates

Subscribe to Get the Latest Financial Tips and Insights Delivered to Your Inbox!

Stay informed with our finance blog! Get expert insights, money management tips, investment strategies, and the latest financial news to help you make smart financial decisions.

We're social. Connect with us:

Facebook X (Twitter) Instagram YouTube
Top Insights

Trump bill helps wealthy, hurts low earners: Yale report

July 1, 2025

What’s next after strong bank stress tests?

July 1, 2025

High-yield savings rates today: June 30, 2025 | Top APY bumps up to 4.44%

June 30, 2025
Get Informed

Subscribe to Updates

Subscribe to Get the Latest Financial Tips and Insights Delivered to Your Inbox!

© 2025 Smartspending.ai - All rights reserved.
  • Contact
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.