Mortgage predictions for March 2025: The rates decrease with the increase in economic interests

Mortgage rates in a slightly declining direction, with average rate A stable mortgage for 30 years A decrease of 6.9 % in early February to about 6.7 % this week. But the fragile economy is likely to maintain the freezing of the housing market for a period of time.

American stocks fell after President Donald Trump He refused to exclude full recession In an interview on Sunday. The potential housing buyers of what Trump now call a “transitional period”, with more severe enlargement, economic austerity and slow labor market.

The high unemployment reduces consumer spending and slows the demand, which generally leads to a decrease in mortgage rates, according to Colin RobertsonAn expert in mortgage industry and the founder of truth about the mortgage site. “With uncertainty about definitions, trade and government spending, mortgage rates may be stuck in forgetfulness,” Robertson added.

The housing giant is expected to do the average mortgage rates above 6.5 % for most of the year. The lenders have set prices depending on a set of factors, including investor expectations and monetary policy of the Federal Reserve. Any transformation in economic expectations can change the mortgage expectations in the coming months.

What causes low mortgage rates this week?

The increasing concerns about the turbulent economic agenda in the Trump administration have led to a decrease in investor confidence in the stock market, increased demand for bonds, and reducing their revenues. Translate the revenues of the bonds to a decrease Borrowing costs for home buyers (Fixed mortgage for 30 years is closely related to the treasury memo for 10 years).

When low mortgage rates are based on the expectation of a slower economic growth, this is “away from a desirable economic environment,” according to Matt CouliarEconomic expert in Modi analyzes. “This is not a pink picture,” Couliar said.

However, the low -low rates of home loan will not change this month, equivalent to the ability to afford housing, especially when the family income cannot keep pace with the high cost of living. Real estate mortgage rates are still higher than they were last September, as shown below.

What is the effect of the Federal Reserve on prices?

The big question is how new job data will be tightened and financially Impact on federal reserves Interest rate adjustments in the coming months. Although the Federal Reserve does not specify real estate mortgage rates directly, the changes in the standard federal funds affect other consumer borrowing rates, such as home loans, in the long run.

After inflation showed continuous signs of slowdown in late 2024, the Federal Reserve reduced interest rates three times. However, at its next meeting on March 19, the central bank is unlikely to make any discounts. during Forum in New York Last Friday, Federal Reserve Chairman Jerome Powell repeated the need to maintain fixed rates based on the unexpected effects of government policy. “We are in a good position to wait for greater clarity,” said Powell.

The markets expect that the Federal Reserve will resume reduction in interest rates in May or June when it is clear whether there is an increasing risk of staging job loss. The wave of federal layoffs and job discounts has not been reflected after a continuous direction in work data. “It will take more than one month of negative recruitment data to study the federal reserve to change the policy position,” she said. Julia PollackSenior Economists in ZipRecruiter.

While mortgages today are costly compared to 2 % interest rates From the era of the epidemic, experts say that the rocky bottom rates will not return unless there was a severe economic shrinkage. Although prices may continue to decline, they are unlikely to decrease much less than 6 % by the end of 2025.

Expert advice for home buyers

with The spring season for the house When rapidly approaching, potential housing buyers are left wondering whether the market will enter or continue to wait on the margin. It is never good to rush to Buy a house Without creating a clear budget.

Here are what experts recommend before buying a house:

💰 Build your credit degree. Your credit degree will help determine whether you are eligible to get a mortgage and at any interest rate. A Credit From 740 or above it will help you qualify for a lower rate.

💰 Except for a larger first batch. greater Premium It allows you to get a smaller real estate mortgage and get a lower interest rate than your lender. If you can bear it, the batch is at least 20 % will remove the private mortgage insurance.

💰 Shop the mortgage lenders. It can help compare loans from multiple mortgage lenders Negotiate a better rate. Experts recommend obtaining at least two estimates of loans from two different lenders.

💰 Consider real estate mortgage points. You can get a lower mortgage rate through purchase Mortgage pointsWith each point costs 1 % of the total loan amount. One mortgage point is equal to a decrease of 0.25 % in the mortgage rate.

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