Freddie Mac announced that the average 30-year fixed mortgage rate has decreased to 6.69%, the lowest since late October, down from 6.81% the previous week. Despite this decline, borrowing costs remain significantly higher than September levels, indicating ongoing affordability challenges.
Redfin Corp. predicts that the 30-year mortgage rate will hover around 7% throughout 2025. The company suggests that if the economy remains robust and proposed tax cuts and tariffs by Donald Trump are implemented, the Federal Reserve might only reduce interest rates twice next year.
Freddie Mac's Chief Economist, Sam Khater, noted that even minor rate changes significantly impact buying demand, highlighting ongoing affordability barriers. While housing supply is nearing pre-pandemic levels, high listing prices and mortgage rates continue to limit affordable options for buyers.
