Today's mortgage rates on July 21, 2025: Purchasing rates remain steady, while refinancing rates have climbed up.
Mortgage Rates Forecasted to Gradually Decline Through 2026
In a positive development for potential homebuyers and investors, various housing experts and organizations have predicted a gradual decline in 30-year mortgage rates for the remainder of 2025 and throughout 2026.
The projected rates, according to these authorities, are expected to decline gradually from the current mid-to-high 6% range to around 6.0% or slightly below by the end of 2026.
Key expert forecasts include:
- Fannie Mae, in its July 2025 update, expects 30-year mortgage rates to end 2025 at about 6.4%, declining further to 6.0% by the end of 2026.
- The Economy Forecast Agency (EFA) projects a gradual downward trend with rates closing 2025 around 6.2%, dropping below 6% by mid-2026 (5.83% in June), and finishing 2026 at roughly 5.86%.
- The National Association of Realtors (NAR) forecasts mortgage rates at 6.7% for 2025 and decreasing to 6.0% in 2026.
Detailed analysis suggests that mortgage rates will hover in the mid-6% range from August to December 2025, around 6.3%–6.5% by December 2025, before continuing to decline into 2026.
Across these sources, the consensus is a slow decline in mortgage rates from the current average near 6.7% (as of mid-2025) to somewhere between 6.0% and 5.8% by the end of 2026. This trend reflects expectations of a stabilizing economy and easing monetary policy pressures.
Summary Table of Projections
| Timeframe | Projected 30-Year Mortgage Rate | Source | |---------------------|----------------------------------|----------------------------| | End of 2025 | 6.2% to 6.5% | EFA[2], Norada Real Estate[1] | | End of 2025 | 6.4% | Fannie Mae[3] | | End of 2025 | 6.7% | NAR[4] | | Mid-2026 (June) | ~5.83% | EFA[2] | | End of 2026 | 5.86% to 6.0% | EFA[2], Fannie Mae[3], NAR[4] |
In the mortgage market as of July 21, 2025, purchase mortgage rates show slight improvements or stability, while refinance rates have edged upward. Homeowners refinancing today may have older mortgages with lower locked-in rates, reducing their incentive to refinance unless rates drop significantly.
Those monitoring mortgage and refinance rates should stay informed of economic indicators, Federal Reserve signals, and housing inventory trends to predict future rate movements. Lenders price refinance loans higher due to increased risk of borrower default, and market liquidity and mortgage-backed securities demand affect refinance rate pricing.
The APR (annual percentage rate) for a Conforming 30-Year Fixed loan is approximately 6.87%, with a typical APR difference of about +0.40% compared to the interest rate. Inflation and Fed policy changes impact borrowing costs differently over time for refinancing compared to purchase mortgages.
The APR for a VA 30-Year Fixed loan is approximately 6.32%, with a typical APR difference of about +0.22% compared to the interest rate, with funding fees varying by case.
Meanwhile, in a high-rate environment, it's important to focus on cash-flowing investment properties in strong rental markets. Companies like Norada help investors identify turnkey real estate deals that deliver predictable returns, even when borrowing costs are high.
- With mortgage rates forecasted to decline gradually through 2026, real-estate investments may present attractive deals for those in the personal-finance market.
- Financial institutions are likely to offer favorable financing options on mortgages as the market growth continues, making it a strategic moment for home buyers and investors.
- For those considering investment in the real-estate sector, focusing on cash-flowing rental properties in robust markets could yield promising returns amidst the predicted mortgage rate decline.
- The declining mortgage rates can potentially encourage business growth in the real-estate industry, as more individuals and corporations may choose to invest in properties.
- The gradual decrease in mortgage rates can positively impact the rental market, as it may make it more affordable for tenants to secure housing, stimulating the growth and demand for rental properties.
- Investors looking to make the most of the current market conditions may seek turnkey real-estate deals, to ensure predictable returns even in a high-rate environment.
- To make informed decisions, it's crucial for interested parties to monitor economic indicators, housing inventory trends, and Federal Reserve signals, as they can greatly influence both purchase and refinance mortgage rates in the near future.
