As a homebuyer in Wisconsin, I’ve been keeping a close eye on mortgage rates, trying to determine whether now is the right time to purchase a home. With rates fluctuating over the past few years and affordability still a challenge, the big question remains: Will mortgage rates go down in 2025?

Looking at recent trends, there’s reason to be cautiously optimistic. Some financial experts predict that mortgage rates could decrease as Treasury yields decline, and home prices might see a slight drop with an increase in available housing. However, this doesn’t necessarily mean that we’ll return to the low rates and affordable home prices of the pre-pandemic years.
How Did We Get Here?
It wasn’t long ago that mortgage rates were at historic lows. After the pandemic hit in 2020, the Federal Reserve cut rates drastically, which led to an unprecedented boom in homebuying. By early 2021, the average 30-year mortgage rate hit a record low of 2.65%. But as inflatio ...