Mortgage rates need to revitalize the frost housing market at a rate below 6%, according to the National Association of Realtors (NAR). NAR economists shared a 30-year fixed-rate mortgage at the July 16 Real Estate Forecast Summit, which will make the median homes of about 5.5 million households affordable and affordable for about 5.5 million households.
“If you want to reach this magic number, about 10% or 550,000 households are likely to buy a home over the next 12 or 18 months,” the organization said in a press release.
But NAR experts don't think interest rates have reached this threshold until next year. Fannie Mae predicts that they will remain 6% or higher until at least 2027.
While home shoppers may hope lower interest rates later this fall, state housing expert Jonathan Miller believes that won’t move.
Miller, founder and CEO of Miller Samuel, an evaluation firm, told CNBC Select that even in the second half of 2025, various Wall Street companies predicted cuts of one to three rates in the second half of 2025.
Miller said banks are reluctant to lower mortgage rates during a time of economic uncertainty.
Should you buy it when the price is still high?
Just because rates may rise doesn’t mean you should wait two years to mortgage your mortgage, said Jessica Lautz, deputy chief economist at NAR.
She added that it may even be cheaper now.
“It's actually a very good moment for home buyers, rather than seeing prices drop, having to compete, and maybe even a surge in demand when making an offer for that listed home,” Lauz said.
Rates are not the only thing
The current interest rate environment is an important consideration when shopping for mortgages, but “there are a lot of factors that get into what someone pays for a mortgage every month.”
Some are In the case you control, including your credit score, debt-to-income ratio and down payment scale.
If you are waiting for the tax rate to drop, spend the next six months paying off your debt and saving. Not only can you improve your credit score, but you can also contribute in advance.
Lautz added that while interest rates are historically high, they also remain relatively flat, which could be very helpful.
“Since January, they have been in the mid-term range of 6%, 6.7% or 6.8%. “It allows buyers to plan the home purchase process, view the home as a real estate agent, lock in the price and be happy with it.” They won't miss it. ”
Online mortgage lenders can often help homebuyers with lower interest rates and faster closing times
Quotes in this section are from member partners and are selected based on a combination of participation, product relevance, compensation, and consistent availability.
Mortgage Rate FAQ
When will mortgage rates fall?
Housing experts also don't expect a significant decline this year, and may even be the next one. Freddie Mac predicts mortgage rates will reach 6.4% by the end of 2025 and 6.0% by the end of 2026
Should I buy a home before the mortgage rate drops?
The rates have remained flat since January 2025, hovering below 7%. NAR economist Jessica Lautz said interest rate stability brings a good environment for home purchases. There are fewer shoppers in the market, housing prices will not rise sharply, and buyers will not feel it. They missed a month or two.
Will buying a home in 2026 be cheaper?
While mortgage rates may drop in 2026, the ongoing housing shortage means average home prices will not show any signs of a decline. Whether you want to pay more for a specific property in 2025 depends on many variables, not just the mortgage rate pattern.
Subscribe to the CNBC SELECT newsletter!
Money is important – so make the most of it. Get expert tips, strategies, news, and everything else you can use your money to the best of your money. Register here.
Why trust CNBC choice?
At CNBC Select, our mission is to provide readers with high-quality service news and comprehensive consumer advice so they can make informed decisions with their own money. Each tax article is based on a strict report from our team of expert writers and editors, with a broad understanding of the tax system and products. Although CNBC Select has earned commissions from member partners on many quotes and links, we create everything without any content from a business team or any third party, and we pride ourselves on news standards and ethics.
Catch up with the deep coverage of CNBC Select credit card, , , , , banking and moneyfollow us Tiktok, , , , , Facebook, , , , , Instagram and twitter Stay up to date.
Editor's note: The opinions, analysis, comments or suggestions expressed in this article are separate opinions of selected editors and have not been reviewed, approved or otherwise endorsed by any third party.