Today's Mortgage Rates - July 13, 2025: General Increase in Rates vs. Last Week

Today's Mortgage Rates - July 13, 2025: General Increase in Rates vs. Last Week

The economic landscape for mortgage rates over the next few years is shaping up to be a dynamic one, with potential rate changes influenced by various factors. Here's a look at what experts are predicting for mortgage rates from 2026 to 2028.

## Mortgage Rate Projections

According to current projections, mortgage rates are expected to decline from their current levels in the coming years. In 2026, rates are forecasted to decrease from around 6.89% to about 5.97% by the end of the year[3]. This modest decline is anticipated as economic conditions and potential rate cuts by the Federal Reserve are factored in.

In 2027, rates are projected to fall further to approximately 4.83% by the end of the year[3]. This continued decline would be favorable for homebuyers, reflecting a potentially stable economic environment and lower interest rates.

By 2028, mortgage rates are expected to fluctuate between 3.50% and 5.77% throughout the year. Specifically, rates are forecasted to reach a low around mid-year, with a notable rebound in the second half. By December 2028, rates are predicted to close at about 5.38%[1].

## Factors Influencing Mortgage Rates

Several factors could impact these projections, including inflation rates, monetary policy decisions by the Federal Reserve, and global economic conditions. Changes in inflation rates can influence mortgage rates, as higher inflation often leads to higher rates to maintain purchasing power.

Federal Reserve actions, such as rate cuts, can significantly impact mortgage rates. A tightening cycle could raise rates, while rate cuts could lower them. Unexpected global events or shifts in consumer behavior can also affect mortgage rates.

## Making Informed Decisions

While these projections suggest favorable conditions for homebuyers in the near future, the dynamic nature of the economy means that actual rates could vary based on unforeseen events. Therefore, it's crucial for buyers and homeowners to evaluate their personal circumstances and financial goals carefully.

Understanding lender policies, credit scores, and loan-to-value ratio (LTV) can help in getting better mortgage rates. Furthermore, potential mortgage rate reductions loom on the horizon, making it essential for individuals to stay informed and make strategic decisions that maximize opportunities in real estate.

Moreover, in a high-rate environment, it's important to focus on cash-flowing investment properties in strong rental markets[4]. For instance, Norada helps investors identify turnkey real estate deals that deliver predictable returns, even when borrowing costs are high.

As of July 13, 2025, the national average for a 30-year fixed mortgage is 6.87%, an increase from the previous 6.77%. However, the 30-year fixed refinance rate is 7.06%, showing a decrease of 0.04% from the previous week[2]. The 20-year fixed rate is 6.44%, with a 0.09% increase from the previous week, while the 5-year ARM rate is currently 7.86%, down 0.04% from the previous week[2]. The 7-year ARM rate is 7.74%, with a 0.39% increase from the previous week, and the 10-year fixed rate is 5.78%, up 0.17% from the previous week[2].

In conclusion, while mortgage rates are expected to decline in the coming years, it's essential for homebuyers and investors to stay informed, understand the nuances of mortgage rates, and make strategic decisions that maximize opportunities in real estate.

1. In the coming years, the mortgage market might witness a decline in rates, with 2026 forecasting a drop from around 6.89% to 5.97% by year-end.
2. By 2027, desirable conditions for homebuyers could continue, as mortgage rates are predicted to fall to approximately 4.83% by year-end.
3. In 2028, mortgage rates are expected to fluctuate between 3.50% and 5.77%, with rates reaching a low mid-year before a rebound in the second half.
4. Various factors could impact these predictions, including inflation rates, Federal Reserve actions, and global economic conditions, which may influence purchasing power, rate cuts, and consumer behavior.
5. As mortgage rates decrease, individuals must evaluate their personal circumstances, financial goals, and lending policies, credit scores, and loan-to-value ratios to make the most informed decisions.
6. In high-rate environments, it's beneficial for both homebuyers and investors to focus on cash-flowing investment properties in strong rental markets, taking advantage of experts like Norada, who help find turnkey real estate deals yielding predictable returns.
7. For those interested in investing in real estate, personal finance, and business, understanding the mortgage rate landscape and its impact on the real estate market is crucial to maximize opportunities.

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