

The Mortgage Rate “Range” to Expect for the Rest of 2025
8 snips May 2, 2025
Expect significant mortgage rate fluctuations through 2025 driven by recession and inflation fears. Discover who really influences mortgage rates and gain insights on potential scenarios for both falling and rising rates. The discussion includes strategies for investing amidst uncertainty, as well as essential advice for home buyers. Learn about the pressures on the American economy, including tariffs and bond market dynamics, and why understanding these factors is crucial for building wealth in real estate.
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Mortgage Rate Volatility Unpacked
- Mortgage rates are highly volatile and have fluctuated between 6% and 7.5% in the past year.
- This volatility is frustrating for investors and is not normal compared to historical steadiness.
Fed Doesn't Set Mortgage Rates
- The Federal Reserve does not directly set mortgage rates; the bond market primarily controls them.
- When bond yields rise, mortgage rates rise, and when yields fall, mortgage rates typically decline.
Bond Investor Sentiment Drives Rates
- Bond investors dislike inflation and instability, which cause bond yields and mortgage rates to increase.
- Fears oscillating between inflation and recession create ongoing volatility in mortgage rates.