Forecasted Interest Rates on Mortgages: July 22 to August 22
The mortgage market is expected to see a gradual easing of rates in the second half of 2025, according to leading forecasts. The average 30-year fixed mortgage rate, which was around 6.7% in July 2025, is predicted to decrease slightly towards the end of the year, reaching a range of 6.3% to 6.5%.
The current rates, down from a 52-week high of about 7.04%, have been relatively stable but high compared to past years. Experts see rates staying above 6.5%, with some temporary minor dips possible but no major drops expected without significant economic shifts.
Some forecasts suggest a slow decline towards the end of the year, supported by expectations of Federal Reserve rate cuts later in 2025 (potentially in September, November, and December). The Federal Reserve will likely monitor the economic data before making any decisions on rate cuts at its July meeting.
Inflation concerns remain a key factor in keeping rates elevated. Trade measures and geopolitical events contribute to market volatility and could exert upward pressure on rates. The 30-year fixed mortgage rate has been trending slightly upwards in the past month, with a slight increase to 6.75% in mid-July 2025.
Experts predict that mortgage rates will stay above 6.5% for the rest of 2025. With rates remaining elevated, it's more important than ever to focus on cash-flowing investment properties in strong rental markets.
Fannie Mae is more optimistic, predicting around 6.6% for the third quarter, while the National Association of Realtors projects around 6.4% for Q3. The average prediction for 30-year fixed mortgages in Q3 2025 from experts is 6.64%.
If you're thinking of buying a home, it's wise to get pre-approved for a mortgage. Mortgage rates are expected to remain relatively stable and moderate throughout July 2025. Since the start of the year, rates have been climbing because prices on everything have been rising (inflation) and the Federal Reserve has been hiking interest rates to try to cool things down.
It's worth noting that in 2025, the 30-year fixed mortgage rate has settled into a range between the mid-6% to low-7%. Rates have been below 7% for the past 26 weeks. Mortgage rates have been influenced by worries about the economy, the rate of inflation, and Federal Reserve policies.
In June 2025, the average 30-year fixed mortgage rate was around 6.72%, and on July 16, 2025, the rate was 6.81%. For the week of July 17-23, 2025, half of the experts surveyed think rates will rise.
In conclusion, while mortgage rates for the second half of 2025 will likely be somewhat high by historical standards, they may ease slowly with Federal Reserve policy easing and moderate economic cooling. Stable rates near 6.5%-6.7% through the summer, dipping closer to 6.3%-6.5% by year-end, appear to be the consensus among leading forecasts.
- Higher mortgage rates in 2025 may incentivize investors to scrutinize turnkey real estate deals that guarantee positive cash flow.
- Given the news about mortgage rates policy, net mortgage investments may see stabilization, leading to a stronger finance sector in the second half of the year.
- The current market trends suggest that rental properties, especially those located in robust markets, will remain a lucrative investment opportunity despite the high mortgage rates.
- Despite the gradual easing of mortgage rates in the second half of 2025, the tax implications of investing in real estate continue to influence potential investors' decisions.
- The expectancy of moderate tax advantages on rental properties could encourage businesspeople to pour more funds into the real estate market, further stimulating the economy.
- With the mortgage market remaining volatile and rates above 6.5%, finance experts warn against charging aggressive tax rates on real estate investments, recommending a more balanced approach instead.
