Today's Mortgage Rates - July 7, 2025: Interest Rates Increase All Around, 30-Year Fixed-Rate Mortgage Escalates to 6.81%
With the end of July 2025 fast approaching, homeowners and potential buyers are keeping a close eye on the mortgage market. As of July 7, the national average for a 30-year fixed mortgage stands at 6.81%, while refinance rates have declined slightly to 7.05%. However, recent forecasts predict a **gradual decline overall** in mortgage rates for the remaining months of the year.
The 15-year mortgage rate forecast shows rates declining steadily through the second half of 2025. For example, from mid-July’s close around 5.61%, rates are expected to dip to about 5.14% by December. This consistent downward trend is likely due to anticipated Federal Reserve actions to combat inflation.
The 30-year fixed mortgage rates, which were averaging around 6.67% in early July, are expected to remain in the mid-to-upper 6% range during July. Slight decreases are possible, but persistent economic uncertainty and inflation concerns may keep rates elevated in the short term. Nevertheless, gradual declines might occur later in the year if economic conditions stabilize and the Fed cuts interest rates as projected.
Inflation and Federal Reserve policy play crucial roles in mortgage rate predictions. While inflation has not surged yet despite tariffs, an inflation bump might appear soon. The Fed is leaning toward holding rates steady in July and possibly cutting rates in September. Such a rate cut would likely contribute to lower mortgage rates in the latter part of 2025.
Organisations like the Mortgage Bankers Association and Fannie Mae expect mortgage rates to remain mostly steady through the summer months, with gradual declines starting in the third quarter and extending into early 2026.
In a high-rate environment, it's important to focus on cash-flowing investment properties in strong rental markets. For investors seeking turnkey real estate deals that deliver predictable returns, even when borrowing costs are high, Norada can help.
In conclusion, mortgage rates in 2025 are forecasted to trend downward gradually, especially in the second half of the year, with some short-term stability or slight upticks mid-year due to inflation pressures and Fed decisions. Buyers and refinancers might find better opportunities towards the end of 2025 if these forecasts hold true.
**Table: 2025 Mortgage Rate Trend**
| Month | 15-Year Rate Forecast | 30-Year Rate Outlook | |------------|----------------------|-----------------------------------| | July | ~5.44% to 5.96% | ~6.5% to 6.8%, slight decrease possible | | August | ~5.53% to 5.87% | Remain mid-to-upper 6% range | | September | ~5.37% to 5.71% | Potential steeper decline post Fed cut? | | October | ~5.40% to 5.74% | Stabilizing around mid-6% | | November | ~5.18% to 5.57% | Continued decline forecasted | | December | ~4.99% to 5.34% | Rates finishing lower than mid-year |
[1] Source: Mortgage News Daily [2] Source: Bankrate [3] Source: CNBC
- Against the backdrop of a forecasted gradual decline in mortgage rates for the latter part of 2025, homeowners and potential buyers are paying close attention to the real estate market.
- The 15-year mortgage rate prediction shows rates steadily declining from mid-July's close of around 5.61%, reaching approximately 5.14% by December, due in part to anticipated Federal Reserve actions designed to combat inflation.
- Against this backdrop of decreasing mortgage rates, investors should consider focusing on cash-flowing investment properties in strong rental markets, particularly those seeking turnkey real estate deals that deliver predictable returns, even in a high-rate environment.
- In a high-rate environment, a business strategy that considers personal-finance aspects, such as the stability of rental markets and the potential for investment growth, is essential.
- According to organisations like the Mortgage Bankers Association and Fannie Mae, mortgage rates are expected to remain relatively steady through the summer months, with gradual declines starting in the third quarter and extending into early 2026.
- By the end of 2025, buyers and refinancers might find more attractive deals as mortgage rates trend downward and stabilize, according to these forecasts.
