BiggerPockets Real Estate Podcast
The Mortgage Rate “Range” to Expect for the Rest of 2025
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.
27:52
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Quick takeaways
- Fluctuating mortgage rates, influenced by bond yields and economic fears, pose challenges for investors in predicting housing market trends.
- Adopting a long-term investment strategy is essential, focusing on properties with upside potential despite high current mortgage rates.
Deep dives
Current Mortgage Rate Volatility
Mortgage rates are experiencing significant volatility due to various economic factors. Rates fluctuated from around 7.5% a year ago to 6% last August, then back to 7.25% in January and down again to 6.6% by April, only to rise to 7% again recently. This unpredictable pattern reflects the complex relationship between mortgage rates and bond yields, which are influenced by investor sentiment toward inflation and economic stability. Investors need to stay informed about these fluctuations, as they directly impact the housing market and investment strategies.
