Mortgage Rates Hit 2025 Low as Recession Fears Rise

8 snips

Mar 3, 2025

Mortgage rates have hit a new 2025 low, sparking excitement for homebuyers. However, fears of a recession loom large, with rising unemployment and inflation concerns. The discussion delves into why lower rates could indicate a more significant economic shift. Listeners learn about the volatility in the market and what it means for investors. Should they act now or wait for even better rates? This analysis reveals crucial insights for navigating the current financial landscape.

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INSIGHT

Mortgage Rates and Bond Yields

Mortgage rates correlate more with 10-year US Treasury yields than Fed actions.
Bond investor sentiment, fluctuating between inflation and recession fears, drives these yields.

INSIGHT

Inflation vs. Recession Fears

Inflation and recession fears drive bond yields and mortgage rates.
Inflation fears increase yields and rates, while recession fears lower them.

INSIGHT

Recessionary Fears and Mortgage Rates

Mortgage rates have fallen due to increasing recessionary fears.
These fears partially stem from declining consumer confidence.

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Mortgage rates are now at their lowest point in months, giving homebuyers and real estate investors some much-needed relief. But it isn’t all good news. With lower mortgage rates comes more market volatility, a weaker job market, recession risks, and new inflation fears. A lot is impacting the housing market, and in a time when nothing seems to make sense, Dave is breaking down the logic behind why mortgage rates are falling even as the Fed pauses.

First, let’s talk about the good news: mortgage rates dropping half a percentage point from their three-month high to hit a new 2025 low. This is great news for buying real estate but may signal a bigger, more substantial economic shift. The bad news? Americans are growing fearful of the economy. A recession seems like it’s still in the cards, unemployment is rising, high-paying jobs are getting terminated left and right, and everything costs more.

With all that taken into account, what should YOU, a real estate investor, do right now to ensure you still build wealth regardless of which direction the market moves? Should you lock down a mortgage rate now or wait for even greater interest rate relief? Stick around; Dave is giving a full analysis of today’s economic state.

In This Episode We Cover

A new 2025 mortgage rate LOW as rates drop below the 7% threshold

Why Americans are pinching pennies and fearing for the economy

Is a recession still possible, or are we close enough to a “soft landing”?

How tariffs, inflation, and job losses (NOT the Fed) are moving mortgage rates

What investors should do NOW if they’re under contract (or will be) for their next property

And So Much More!

Links from the Show

Join the Future of Real Estate Investing with Fundrise

Join BiggerPockets for FREE

Find Investor-Friendly Lenders

Dave's BiggerPockets Profile

On The Market 290 - Redfin: Tariff Fears Drive Up Mortgage Rates, Throwing 2025 Off-Track

Consumer Confidence Survey

Consumer Sentiment Index - University of Michigan

Invest in Any Market Cycle with “Recession-Proof Real Estate Investing”

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-300

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