Mortgage Rates...What Will They Do Spring 2025????

Have you ever went to Las Vegas, stepped into a casino with your $100 bucks, sat down at a slot machine and just knew you would walk out a winner with $10,000?

Ok, may be a bit of an exaggeration, I walk in with $100 bucks hoping I don't end up at the penny slots and still walk out a loser!

The point I am trying to make, is the reality of mortgage rates, no matter who or how predictions are made, if history is any guide, reality will play out with much more variation, then anyone can predict.

I have been a full time residential real estate agent for over 40 years. When I started in 1981 there wasn't a fixed mortgage rate. In fact, all there was, was adjustable rate mortgages with no ceiling or cap. Which meant a rate started out at 14% and had no annual cap, so it could keep going up.....

I was so excited when there was finally a fixed rate mortgage. When there was a 10% fixed mortgage rate I saw so much activity with home sales. Buyers finally had the confidence to see how a mortgage budget could fit into their overall budget and many became a home owner, who only could dream before.

We all got spoiled with the record-low rates of the pandemic era, so many opportunities were given and interest rates were thought to be the new standard....WRONG!

One think I have learned in 40 plus years is the real estate market is constantly changing and you can't count on anything staying the same. Rates up, rates down, values up, values down...anyone who truly sees the clear picture of the current market...sadly is only guessing and they have no clue, really.

The Federal Reserve is starting to cut interest rates, and mortgage rates are getting lower. But lower interest rates alone won't repair today's housing market, which is also challenged by high home prices and low inventory.

It will take sometime to see things get smoothed out, it won't be fixed overnight.

My advice would generally be that homebuyers and sellers not try to time the market, but figure out at what point the numbers make sense for them. That is what home price and mortgage rate can you comfortably make a move.

Sorry, 2.5%-3% mortgage rates may not happen again...and yet homes will get listed and buyers will purchase...the market evolves and changes, but one thing we can count on...we all dream about owning a home.

Remember....don't gamble ... don't play the slots...expecting to win...instead sometimes we have to let things land as they will and be ready for when the win hits!!! Don't give up the dream of owning a home...dreams come true!!!!!