Mortgage Rates Expected to Fall Through 2025, Offering Relief to Struggling Homebuyers

• The 30-year fixed mortgage rate will drop through 2024, per Fannie Mae's forecast, falling from 7% to 6.5% • This spells good news for homebuyers struggling with affordability due to high rates • Rates jumped in 2022 due to the Fed's efforts to curb inflation, causing a housing slowdown • Fannie Mae expects rates to keep falling in 2025, with sales and mortgage originations recovering • The forecast comes as inflation drops, allowing the Fed to shift towards rate cuts to stimulate growth