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About Marco Santarelli

Marco Santarelli is an investor, author, Inc. 5000 entrepreneur, and the founder of Norada Real Estate Investments – a nationwide provider of turnkey cash-flow investment property.  His mission is to help 1 million people create wealth and passive income and put them on the path to financial freedom with real estate.  He’s also the host of the top-rated podcast – Passive Real Estate Investing.

Today’s Mortgage Rates: 5-Year ARM Drops Slightly to 7.84% – July 14, 2025

July 14, 2025 by Marco Santarelli

Today's 5-Year Adjustable Rate Mortgage Drops from 7.56% to 7.54% - June 28, 2025

As of today, July 14, 2025, if you're looking at a 5-year Adjustable Rate Mortgage (ARM), you'll find that the average rate has decreased slightly, dropping from 7.89% to 7.84%. This small dip might be good news for some, but is it the right move for you? Keep reading as I unpack what's happening in the mortgage market and if an ARM could be a smart choice for your situation.

Today’s Mortgage Rates: 5-Year ARM Drops Slightly to 7.84% – July 14, 2025

The world of mortgage rates can seem baffling. Rates fluctuate depending on various scenarios. Keeping up with the changing numbers can feel like doing complicated math homework every day. So, let's break down all the factors that affect today's mortgage rates:

  • The Economy: This is the big picture. Is the economy growing? Are people employed? If things are generally looking good, interest rates tend to rise. If things are shaky, rates often drop to encourage borrowing and spending.
  • Inflation: One of the biggest drivers of interest rates is inflation. If the prices of everyday goods and services are increasing, it is likely that you'll see your mortgage rate rise, accordingly.
  • The Federal Reserve (The Fed): The Fed is like the conductor of the economic orchestra. The Federal Reserve influences the financial markets through its monetary policy in an effort to keep the economy on track.
  • The Bond Market: Mortgage rates are closely tied to the bond market, particularly the yield on 10-year Treasury bonds. When bond yields go up, mortgage rates usually follow suit.
  • Global Events: Major world events, like a crisis somewhere across the globe, can create uncertainty that impacts financial markets and mortgage rates.

The Current Mortgage Rate Snapshot (July 14, 2025)

Let's take a look at Zillow's data for the current rates across different types of mortgages as of today:

Conforming Loans:

PROGRAM RATE 1W CHANGE APR 1W CHANGE
30-Year Fixed Rate 6.86% up 0.02% 7.32% up 0.03%
20-Year Fixed Rate 6.53% up 0.06% 6.62% down 0.29%
15-Year Fixed Rate 5.91% up 0.03% 6.22% up 0.04%
10-Year Fixed Rate 6.03% up 0.25% 6.12% up 0.14%
7-year ARM 7.74% up 0.16% 8.22% up 0.13%
5-year ARM 7.84% down 0.04% 8.13% down 0.01%
3-year ARM — 0.00% — 0.00%

Government Loans:

PROGRAM RATE 1W CHANGE APR 1W CHANGE
30-Year Fixed Rate FHA 6.80% down 0.01% 7.82% down 0.01%
30-Year Fixed Rate VA 6.30% down 0.01% 6.52% 0.00%
15-Year Fixed Rate FHA 5.36% down 0.05% 6.32% down 0.05%
15-Year Fixed Rate VA 5.82% down 0.02% 6.17% 0.00%

Jumbo Loans:

PROGRAM RATE 1W CHANGE APR 1W CHANGE
30-Year Fixed Rate Jumbo 7.33% up 0.10% 7.75% up 0.10%
15-Year Fixed Rate Jumbo 6.73% up 0.12% 6.96% up 0.08%
7-year ARM Jumbo 7.53% 0.00% 7.70% 0.00%
5-year ARM Jumbo 7.38% down 0.04% 7.87% down 0.04%
3-year ARM Jumbo — 0.00% — 0.00%

The Slight Dip in 5-Year ARM: What Does It Mean?

The 5-Year ARM is currently sitting at 7.84%, a decrease of 5 basis points from last week. While a small dip in rates is generally positive, it's important to remember that ARMs come with their own set of considerations. Understanding how these loans work is vital before jumping in.

What is an Adjustable Rate Mortgage (ARM)?

Unlike a fixed-rate mortgage, where the interest rate remains the same for the life of the loan, an ARM has an interest rate that can change periodically. The 5-year ARM means that your initial interest rate is fixed for the first five years, after which it adjusts annually based on prevailing market conditions.

Why the Initial Attraction?

  • Lower Initial Rate: ARMs often start with a lower interest rate than fixed-rate mortgages. This can translate to lower monthly payments in the first few years, freeing up cash for other expenses.
  • Potential for Savings: If interest rates decrease during the adjustment period, your mortgage rate (and therefore your monthly payment) could go down. This can save you a significant amount of money over the life of the loan.

The Potential Downsides

  • Rate Increases: The biggest risk with an ARM is that interest rates could rise. If rates go up significantly when your loan adjusts, your monthly payments could become substantially higher.
  • Uncertainty: With an ARM, it's difficult to predict your future monthly payments. This uncertainty can make it harder to budget and plan your finances.
  • Complexity: ARMs can be more complex than fixed-rate mortgages. It's important to understand the terms of your loan, including how often the rate adjusts, the caps on interest rate increases, and the index used to calculate the new rate.

Recommended Read:

5-Year Adjustable Rate Mortgage Update for July 12, 2025

Fixed vs. Adjustable Rate Mortgage in 2025: Which is Best for You

Is a 5-Year ARM Right for You? Some Personal Thoughts

Here's my take on whether a 5-year ARM might be a good fit for you:

  • Short-Term Homeownership Plans: If you plan to move or refinance within the next five years, an ARM could be a smart move. You can take advantage of the lower initial rate without worrying too much about future rate increases.
  • Expecting Income Growth: If you anticipate your income increasing significantly in the next few years, you might be more comfortable with the risk of a potential rate hike. My experience tells me, however, that relying on future plans is frequently a recipe for disaster. I personally wouldn't take out a mortgage on the strength of a promise down the line.
  • Comfortable with Risk: If you're financially disciplined and prepared to handle potential payment increases, an ARM could be a viable option. This is only if you have a solid emergency fund and the ability to absorb higher housing costs, should they arise.

However, consider the following:

  • Long-Term Homeownership: If you plan to stay in your home for the long haul, a fixed-rate mortgage might be a better choice. The predictability of a fixed rate can provide peace of mind and protect you from rising interest rates.
  • Risk Averse: If you're uncomfortable with the idea of your mortgage payment potentially increasing, a fixed-rate mortgage is likely the way to go. Remember, housing should be a source of comfort, not stress.

The Fed's Impact on Mortgage Rates

The Federal Reserve is the big player influencing these rates. They have been carefully navigating economic crosscurrents.

Recent actions of the Fed regarding economic plans include:

  • Rate Cuts Made in Late 2024: The Fed cut rates three times in late 2024 (September to December), reducing the federal funds rate by 1 percentage point to a target range of 4.25%–4.5%, where it has remained through June 2025.
  • Two Possible Rate Cuts for 2025: The Fed’s June 2025 meeting reaffirmed plans for two rate cuts in 2025, but policymakers are divided on timing and magnitude.

Final Thoughts: Do Your Homework!

Whether a 5-year ARM is the right choice for you depends entirely on your individual circumstances, financial situation, and risk tolerance. Take some time to carefully evaluate your options, compare rates from different lenders, and consider consulting with a qualified financial advisor. I believe your peace of mind is most important, so choose the path that allows you to sleep soundly at night.

Capitalize on ARM Rates Before They Rise Even Higher

With fluctuating adjustable-rate mortgages (ARMs), savvy investors are exploring flexible financing options to maximize returns.

Norada offers a curated selection of ready-to-rent properties in top markets, helping you capitalize on current mortgage trends and build long-term wealth.

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Connect with an investment counselor today (No Obligation):

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Also Read:

  • Will Mortgage Rates Go Down in 2025: Morgan Stanley's Forecast
  • Expect High Mortgage Rates Until 2026: Fannie Mae's 2-Year Forecast
  • Mortgage Rate Predictions 2025 from 4 Leading Housing Experts
  • Mortgage Rates Forecast for the Next 3 Years: 2025 to 2027
  • Will Mortgage Rates Ever Be 3% Again in the Future?
  • Mortgage Rates Predictions for Next 2 Years
  • Mortgage Rate Predictions for Next 5 Years
  • Mortgage Rate Predictions: Why 2% and 3% Rates are Out of Reach
  • How Lower Mortgage Rates Can Save You Thousands?
  • How to Get a Low Mortgage Interest Rate?
  • Will Mortgage Rates Ever Be 4% Again?

Filed Under: Financing, Mortgage Tagged With: Adjustable Rate Mortgage, Interest Rate, mortgage, Mortgage Rate Trends, mortgage rates

Is the California Housing Market Heading for a Crash or Correction?

July 14, 2025 by Marco Santarelli

Is the California Housing Market Heading for a Crash or Correction?

You see news headlines talking about rising inventory and slowing sales, and the ghost of 2008 starts to flicker in the back of your mind. So, the big question on everyone's lips, including mine, is: Will the California housing market crash like the Great Recession? In my opinion, while there are certainly worrying trends, a full-blown crash mirroring the severity of 2008 is unlikely, though a significant market correction is definitely on the table.

Let's dive into why I'm leaning this way. It's true, the data paints a picture that warrants a closer look.

Is the California Housing Market Heading for a Crash or Correction?

Echoes of the Past: Rising Inventory and Sluggish Sales

The numbers don't lie. We're seeing a significant jump in the number of homes available for sale in California. According to Realtor.com, active listings in April surged to a post-pandemic high, even surpassing levels seen in April 2020. What's even more striking is that this increase is more pronounced in California compared to the national average. Inventory in the Golden State is up a whopping 50% year-over-year, while the national rise is around 31%.

At the same time, the pace of home sales is undeniably slow. For the past several months, total sales of single-family homes and condos in California have been hovering below the lows we witnessed during the Great Recession on a 12-month rolling basis. That's a sobering statistic. Even the California Association of Realtors reported a further dip in existing home sales in March.

Why This Isn't 2008 (Yet)

While the rising inventory and slowing sales are reminiscent of the pre-crash days, there are fundamental differences that lead me to believe we won't see a repeat of the 2008 catastrophe.

  • Stricter Lending Standards: This is arguably the biggest difference. Back in the mid-2000s, lending practices were… well, let's just say loose. Subprime mortgages were rampant, allowing people with shaky financial footing to take on loans they couldn't afford. When the housing market faltered, a wave of defaults and foreclosures followed, triggering a cascading effect. Today, lending standards are much tighter. Banks are far more rigorous in their approval processes, meaning the vast majority of current homeowners are more creditworthy and less likely to default.
  • Stronger Economy (for now): While there are concerns about a potential recession, the underlying economy, particularly the job market, has been relatively resilient. During the lead-up to the Great Recession, we saw significant job losses, further exacerbating the foreclosure crisis. While job growth may be slowing, we aren't currently experiencing the same level of widespread unemployment.
  • Different Reasons for Inventory Increase: While rising inventory can signal slowing demand, the reasons behind the current increase aren't solely negative. Some of it is simply the market normalizing after the frantic buying frenzy during the pandemic. More sellers are entering the market, which, in a healthy market, is a good thing. The issue is that buyer demand hasn't kept pace.

The Affordability Crisis: A Major Headwind

However, to say everything is fine would be naive. California faces a significant challenge: affordability. The median home price in California is astronomically high, often more than eight times the typical household's annual income. This makes homeownership an increasingly distant dream for many, especially first-time buyers.

Rising mortgage rates over the past year have only compounded this problem, pushing monthly payments even further out of reach. As one analyst put it, “High home prices and rising mortgage rates put homeownership out of reach for many would-be buyers.” This lack of affordability is undoubtedly a major factor contributing to the slowdown in sales.

Will Prices Finally Budge?

Despite the sluggish sales, home prices in California have remained surprisingly firm. The median list price has been virtually unchanged year-over-year. This stickiness in prices has largely been attributed to a lingering supply shortage compared to pre-pandemic levels.

However, with the significant surge in inventory, I believe we are reaching a tipping point. As more homes sit on the market for longer, sellers will eventually be forced to adjust their expectations and lower their prices to attract buyers. Some experts are already predicting a slowing in home price growth, with the possibility of prices flattening or even seeing a slight decline in certain markets over the next year.

Areas of Concern: Vulnerable Markets

It's also important to note that not all parts of California are created equal. Some areas that experienced the most rapid price appreciation during the pandemic and are now seeing the biggest jump in inventory could be more vulnerable to price corrections. Reports have even identified several California counties as being among the most at-risk nationwide for a housing market downturn based on factors like affordability gaps, underwater mortgages, foreclosures, and unemployment. We need to keep a close eye on these specific regions.

My Final Thoughts: Correction, Not Catastrophe

So, to bring it all together, do I foresee a catastrophic crash in the California housing market akin to the Great Recession? No, not in the same way. The fundamental issues that triggered the 2008 crisis – widespread risky lending – are not as prevalent today.

However, I do believe we are heading towards a significant market correction. The unsustainable levels of price appreciation, coupled with the affordability crisis and rising inventory, will likely lead to price stagnation and even moderate price declines in some areas. This correction, while perhaps painful for some sellers, could ultimately be a healthy thing for the market in the long run, potentially making homeownership more accessible for a larger segment of the population.

The key difference, in my opinion, is the reason for the potential downturn. In 2008, it was a systemic collapse fueled by bad loans. Today, it's more of a market recalibration in response to affordability challenges and a cooling demand.

We need to stay vigilant, monitor the data closely, and understand the nuances of our local markets. The California housing market is complex, but by understanding the underlying factors, we can hopefully navigate this period with a realistic perspective.

“Invest in Real Estate in the Growing Markets”

Discover high-quality, ready-to-rent properties designed to deliver consistent returns.

Contact us today to expand your real estate portfolio with confidence.

Contact our investment counselors (No Obligation):

(800) 611-3060

Get Started Now

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Filed Under: Growth Markets, Housing Market, Real Estate Market Tagged With: california, Housing Market

Worst Florida Housing Markets Facing Steepest Price Declines in 2025

July 14, 2025 by Marco Santarelli

Worst Florida Housing Markets Facing Steepest Price Declines in 2025

Thinking about buying or selling a home in Florida? It's crucial to stay informed about the latest market trends. In May 2025, certain areas experienced noticeable dips in median sale prices. This article dives into the Florida housing markets facing the steepest drops in home prices, based on the latest data from Florida Realtors.

Based on year-over-year percentage change in median sale price as of May 2025, those markets were the Naples-Immokalee-Marco Island MSA, Punta Gorda MSA, The Villages MSA, Sebastian-Vero Beach MSA, North Port-Sarasota-Bradenton MSA, Cape Coral-Fort Myers MSA and Tallahassee MSA.

Let's face it, the real estate market is a constantly shifting tide. One day, your home's value might be up, the next, not so much. What was once a seller's dream can quickly become a buyer's paradise, and vice versa. Right now, Florida is somewhere in the middle, trying to find its balance.

According to Florida Realtors President Tim Weisheyer, “Florida’s housing market is finding its balance, and that’s good for buyers and sellers alike.”

However, some areas are feeling the pinch of price drops more than others. This doesn't necessarily mean these are bad places to live, but it's something to consider if you're looking to buy or sell in these regions. As an expert in the field, I will walk you through these markets and explain what these trends could mean for you.

The Big Picture: Florida's Housing Market in May 2025

Before we zoom in on the specific areas, let's take a look at the overall state of Florida's housing market in May 2025:

  • Closed Sales: Down 5.7% for single-family homes and 19.9% for condo-townhouses, year-over-year.
  • Median Sales Price: Single-family homes were at $415,000, a decrease of 2.7% from the previous year. Condo-townhouses showed at $310,000, a sharper decrease of 6.1%.
  • Inventory: Active listings increased significantly, up 28.8% for both property types.

As you can see, inventory went up from last year, closed sales were down and prices saw a small decline. This suggests a shift towards a more balanced market, where buyers have more choices and sellers might need to be more competitive. We are seeing a move away from the intense demand seen in the post-pandemic years. The good news? Prices are still considerably higher than they were in 2020.

Worst Florida Housing Markets Facing Steepest Price Declines in 2025

Now, let's explore the specific metropolitan areas experiencing the most significant price reductions. Below's a table summarizing these market's data.

Metropolitan Area Y/Y % Change in Median Sale Price (May 2025) Median Sale Price (May 2025) Y/Y % Change in Closed Sales (May 2025)
Naples-Immokalee-Marco Island MSA -19.2% $767,800 -15.3%
Punta Gorda MSA -14.5% $325,000 1.7%
The Villages MSA -11.3% $347,000 23.8%
Sebastian-Vero Beach MSA -10.2% $386,190 -6.8%
North Port-Sarasota-Bradenton MSA -9.9% $475,000 -4.7%
Cape Coral-Fort Myers MSA -9.6% $375,000 -1.6%
Tallahassee MSA -5.2% $340,000 -8.8%

Let's go through each one:

1. Naples-Immokalee-Marco Island MSA (Collier County)

  • Price Drop: A significant 19.2% decrease in median sale price.
  • Median Sales Price: $767,800 in May 2025.
  • Closed Sales: Down 15.3% year-over-year.

Naples, often associated with luxury real estate, is experiencing a considerable correction. This could be due to factors like overvaluation during the peak of the pandemic or a shift in buyer preferences. What does this mean? High-end buyers might find some deals here, while sellers may need to adjust their expectations.

Looking at this market, I think it's likely that the luxury segment, which saw unprecedented growth in recent years, is now normalizing. The drop in closed sales supports the idea that buyers are being more selective.

2. Punta Gorda MSA (Charlotte County)

  • Price Drop: A substantial 14.5% decrease in median sale price.
  • Median Sales Price: $325,000 in May 2025.
  • Closed Sales: Up 1.7% year-over-year.

Punta Gorda presents a mixed picture. While prices fell significantly, closed sales actually increased slightly. This could indicate that lower prices are attracting buyers, yet there is still some demand. As a homeowner, you may need to get ahead of other houses. By offering incentives to buyers can get their interst in your offer.

The disconnect between price declines and sales increases intrigues me. It suggests a market where affordability is becoming a key driver. Buyers who were previously priced out might now find opportunities in Punta Gorda.

3. The Villages MSA (Sumter County)

  • Price Drop: A notable 11.3% decrease in median sale price.
  • Median Sales Price: $347,000 in May 2025.
  • Closed Sales: Up a substantial 23.8% year-over-year.

The Villages, known as a popular retirement community, shows a similar pattern to Punta Gorda. Despite a significant price drop, closed sales are up dramatically. The increased sales activity might be due to increased marketing efforts to attract new seniors to the area from outside of Florida as well as lower costs enabling more purchases.

I believe The Villages' unique demographic could be influencing this trend. It's possible that retirees are still drawn to the area, and the price adjustments are making homes more accessible.

4. Sebastian-Vero Beach MSA (Indian River County)

  • Price Drop: A considerable 10.2% decrease in median sale price.
  • Median Sales Price: $386,190 in May 2025.
  • Closed Sales: Down 6.8% year-over-year.

Sebastian-Vero Beach is seeing a drop in both prices and closed sales. This could suggest a slowdown in demand and increased inventory affecting prices.

With both prices and sales declining, this market seems to be facing some headwinds. It may be that buyers are holding back, anticipating further price reductions.

5. North Port-Sarasota-Bradenton MSA (Manatee and Sarasota Counties)

  • Price Drop: A significant 9.9% decrease in median sale price.
  • Median Sales Price: $475,000 in May 2025.
  • Closed Sales: Down 4.7% year-over-year.

This region, with its beautiful beaches and growing population, is also experiencing price corrections and falling closed sales with no change in those trends.

I believe the higher median price point in this area might be a factor. It may be becoming less affordable for some buyers, leading to decreased demand and price adjustments.

6. Cape Coral-Fort Myers MSA (Lee County)

  • Price Drop: A noticeable 9.6% decrease in median sale price.
  • Median Sales Price: $375,000 in May 2025.
  • Closed Sales: Down 1.6% year-over-year.

Cape Coral and Fort Myers, still recovering from Hurricane Ian, may be seeing price adjustments due to the ongoing rebuilding efforts and insurance challenges.

The hurricane's impact likely plays a significant role in this market. The recovery process can be slow and complex, potentially affecting property values in the short term.

7. Tallahassee MSA (Gadsden, Jefferson, Leon, and Wakulla counties)

  • Price Drop: A more moderate 5.2% decrease in median sale price.
  • Median Sales Price: $340,000 in May 2025.
  • Closed Sales: Down 8.8% year-over-year.

Tallahassee, the state capital, is experiencing a gentler price decline compared to the coastal regions. This could be due to its more stable economy and less reliance on tourism-driven real estate.

Tallahassee's relative stability might be due to its employment base, which includes government, education, and healthcare sectors. These sectors tend to be less volatile than those heavily dependent on tourism or seasonal residents.

Key Takeaways and My Opinion

So, what does all this mean for you, the potential buyer or seller?

  • For Buyers: This could be the window if your buying. These areas are looking more affordable and you may find better deals. However, do your due diligence! Research market conditions and look forward instead of looking to the past.
  • For Sellers: Be realistic about pricing. The days of easy profits might be over, which could be why closed sales are down so much over the past year. Work with a real estate agent to give the consumer good reasons to buy your real estate. Make sure yours is better than the competition.

As an investor in the real estate field, I always caution against making broad generalizations. Real estate is hyperlocal. Just because one neighborhood is down doesn't mean another neighborhood next to it is in the same condition.

Looking at the overall market, I believe Florida is transitioning from a period of hyper-growth to a more sustainable pace. The increased inventory is a good sign, giving buyers more choices. It's a far cry from the frenzy that we saw a couple of years ago.

Keep in mind that these trends are based on a snapshot in time. The market can change quickly. Stay informed, work with qualified professionals, and make decisions that align with your personal financial goals.

“Invest in Real Estate in the “Hottest Florida Markets”

Discover high-quality, ready-to-rent properties designed to deliver consistent returns.

Contact Norada today to expand your real estate portfolio with confidence.

Contact our investment counselors (No Obligation):

(800) 611-3060

Get Started Now 

Read More:

  • Cape Coral Housing Market Crash: Boom, Bust, and Echoes in 2025
  • Why is Cape Coral Housing Market in Florida Doomed to Crash in 2025?
  • 5 Popular Florida Housing Markets Are at High Risk of Price Crash
  • 2 Florida Housing Markets Flagged for a Major Price Decline Risk
  • 24 Florida Housing Markets Could See Home Prices Drop by Early 2026
  • Is the Florida Housing Market Headed for Another Crash Like 2008?
  • Key Trends Shaping the Florida Housing Market in 2025
  • This Florida Housing Market Bucks National Trend With Declining Prices
  • Florida Housing Market Crash 2.0? Analyst Warns of 2008 Echoes
  • Tax Relief Proposed as Florida Housing Market Faces Deepening Crisis

Filed Under: Housing Market, Real Estate Market Tagged With: Florida, Housing Market, housing market crash, Housing Market Trends

Cape Coral Housing Market Crash: Boom, Bust, and Echoes in 2025

July 14, 2025 by Marco Santarelli

Cape Coral Housing Market Crash: Boom, Bust, and Echoes in 2025

Cape Coral, Florida, experienced a severe housing market crash as part of the 2008 Subprime Mortgage Crisis and subsequent Great Recession. Renowned for its extensive canal system and waterfront properties, the city's boom turned to bust, leaving a lasting scar on the community.

Ever driven down a street lined with for-sale signs, each one whispering a story of financial hardship? I have. And while the real estate market always has its ups and downs, certain places have experienced truly dramatic cycles. Cape Coral fits this description.

Let's dive into the story of how Cape Coral went from a real estate paradise to its collapse, and what lessons we can learn from its experience. I'll also evaluate the housing market as of 2025.

Cape Coral Housing Market Crash: Boom, Bust, and Echoes in 2025

The Boom Before the Bust (2000-2007)

Imagine a place where the sun shines almost every day, the canals sparkle, and the promise of an affordable waterfront home is on the horizon. That was Cape Coral in the early 2000s. Like many parts of Florida, Cape Coral experienced a huge surge in popularity. It was like everyone wanted a piece of the Florida dream.

  • Affordable homes: Compared to other coastal areas the price was so low that people could believe it. Cape Coral was a good option if people wanted to settle down.
  • Warm climate: It's Florida; sunshine is basically guaranteed, making it perfect for retirees and snowbirds escaping colder climates.
  • Relaxed lifestyle: Imagine spending your days boating, fishing, or simply enjoying the beautiful scenery. That was the appealing promise of Cape Coral.

This combination brought in a wave of buyers. Florida saw a whopping 96% increase in home prices between 2000 and 2007, a Duke University study points out. And I'd wager Cape Coral, with its rapid growth, experienced even higher increases.

New construction was everywhere. Builders couldn't keep up with the demand. Everyone seemed to believe prices could only go up. It was a frenzy, no doubt. This chart illustrates a little bit of the boom years in Florida:

Metric Details
Home Price Increase (Florida) 96% from 2000 to 2007 (HPI from 100 to 196)
Investor Loans Peak 20% of all mortgage loans in 2005
Homeownership Peak 72% in 2006, fell to 65% by 2014

Investor loans, like a sugar rush for the market, peaked at 20% of all mortgages in Florida in 2005. This was fuelled by the false belief that home values would always increase. It created a dangerous recipe for disaster.

The Crash (2008): “Ground Zero”

The music stopped in 2008. The subprime mortgage crisis hit, and Cape Coral, sadly, became known as “ground zero” for the housing market collapse. It was as if someone pulled the plug on the party, and the hangover was brutal.

The root cause? Risky lending practices. Banks were handing out subprime mortgages to people with poor credit. Adjustable rates that reset to much higher payments trapped them. The crisis was as a snowball rolling down hill.

In Lee County, where Cape Coral is located, over 40,000 foreclosures were filed in 2008 alone, according to The News-Press. These figures reflect the devastation the crisis had on people's lives.

Out-of-state credit unions adding fuel to the fire. Norlarco Credit Union, for example, handed out overly risky loans. A review found that a ridiculous 97% of the construction loans were overvalued about 35%. When Norlarco collapsed in 2008, it cost the National Credit Union Share Insurance Fund over $10 million.

These numbers were pretty crazy. Here is a chart that describes the state of the market at that time.

Impact Area Details Numbers
Foreclosures (Lee) Over 40,000 filed in 2008 40,000+
Mortgage Over-Value 97% of construction mortgages overvalued by 35% 97%, 35%
Credit Union Losses Norlarco Credit Union, liquidation led to losses over $10M $10M+

Features like balloon notes and interest-only loans further exacerbated the issue because they were based on the false idea that the market would continue to strengthen forever.

I remember thinking at the time, “This can't last.” But nobody wanted to listen. The allure of easy money and quick profits was far too strong.

The Aftermath (2008-2013): Years of Distress

The years following the crash were bleak. From 2008 to 2013, Cape Coral’s housing market was on life support. Real estate sales mainly involved cash buyers who were jumping on the chance to scoop up distressed properties at dirt-cheap prices. Cape Coral and Fort Myers often topped lists of cash-only closings, confirming the volume of distressed sales.

Properties decayed. Many sat abandoned. Some were invaded by squatters or stripped for scrap metal. Lee County's Neighborhood Stability Program did try its best to buy, fix up, and resell some of the properties. But the damage was extensive, and the city struggled to shake off its image as a foreclosure hotspot.

The broader economy also took a hit. Businesses closed. Unemployment rose. The delinquency rate in Florida jumped from 1.1% in 2006 to 20% in the first quarter of 2010.

Metric Details Numbers
Delinquency rate (Florida) Rose from 1.1% in 2006 to 20% in Q1 2010 1.1% (2006)
Real Estate Sales Mostly opportunistic cash buyers, distressed properties at low prices N/A
Foreclosure Inventory High, with properties sitting available on the market for long periods of time N/A

I recall driving through neighborhoods where every other house seemed to be vacant. It was incredibly quiet and depressing, and a visible sign of a city struggling.

The Recovery (2013-Present): A Gradual Climb

Around 2013, things started to look up. First-time home buyers slowly re-entered the market. Home sales began inching upward. By 2017, the median house price in Lee County reached $243,500, showing a 7.1% rise from the previous year.

Foreclosure rates also declined. In 2016, a RealtyTrac report showed that Cape Coral's rates were down about 93% down from their peak.

Metric Details Numbers
Median Home Price (2017) $243,500 in Lee County, up 7.1% from the previous year $243,500, 7.1%
Foreclosure Levels (2016) 93% below peak in Cape Coral and other metro areas 93%
Home Sales (2015) Nearly 2600 in the first 6 months, 9% increase over the previous year 2600, 9%

Although the market had recovered, recovering your credit and financial stability needed time. The recovery was slow.

Cape Coral's Housing Market in 2025: Déjà Vu?

Now, let's fast forward to today. Are we seeing history repeat itself? I'm starting to sense some concerning parallels.

Here's a snapshot of the current situation:

  • Dramatically Falling Home Prices: Redfin says that Cape Coral home rates were down 7.7% in May of 2025 compared to last year. The median home price is around $361,000.
  • Stagnant Sales: Buyers are being increasingly hesitant. Redfin claims that 608 homes were sold in May this year, down about 5.7% from the 645 last year.
  • Shift to a Buyer's Market: Buyers have a lot more leverage now in negotiations with sellers.
  • Surge in Time on Market: The time has dramatically increased. Homes remain available for 76 days compared to 59 last year.
  • Bottom Ranked: Fox 4 Now reported Cape Coral was last among 123 midsize cities in the U.S. in their July 2025 hotness ratings chart.

To summarize, here's a table breaking down the important numbers:

Key Metric Value (May 2025) Change from Previous Year Source
Median Home Price $361,000 Down 7.7% Redfin
Homes Sold 608 Down 5.7% Redfin
Days on Market 76 days Up from 59 days Redfin

Decoding the Signs

  • Falling Prices: This is the beginning of a shift in supply and demand.
  • Elevated Mortgage Rates: Rates are around 6.94% for a 30-year fixed mortgage, so many buyers are priced out of the market.
  • Economic Cloudiness: Inflation worries, global uncertanties and recession fears, make people cautious in investing.
  • Excess Inventory: Hurricane Ian has resulted in new constructions hitting the market after it.
  • The Perils of Nature: Cape Coral’s vulnerability to insurance costs goes up due to sea levels that impact property values.

2008 vs. 2025: Parallels and Divergences

The similarities between the current picture and the 2008 disaster are a bit scary. The 2008 crisis was driven by fraudulency on mortgages, speculative buying, and lax regulations, whereas now, supply glut, mortgage rates, and uncertainty make it different.

Expert Insights and Predictions

“Housing market headwinds,” Dr. Selma Hepp says. She says Cape Coral has negative growth vs the USA. One can see 2.0% vs Cape Coral's -6.5%.

Realtors I have spoken to say that sellers be realistic about the prices.

Conclusion: Lessons Learned and the Path Forward

The 2008 crash left a mark on Cape Coral, Florida. The city symbolizes the subprime mortgage crisis with all the rising foreclosure rates.

Cape Coral’s experience serves as a reminder to prevent lending practices in the future. Hopefully, the city is evolving its real estate. But this is a good reminder of how important it is to be careful with money.

Invest in Real Estate in the “Hottest Florida Markets”

Discover high-quality, ready-to-rent properties designed to deliver consistent returns.

Contact Norada today to expand your real estate portfolio with confidence.

Contact our investment counselors (No Obligation):

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Read More:

  • Why is Cape Coral Housing Market in Florida Doomed to Crash in 2025?
  • Will the Cape Coral Housing Market Repeat the Crash of 2008?
  • Is Cape Coral the Next Florida Housing Market to Crash?
  • 5 Popular Florida Housing Markets Are at High Risk of Price Crash
  • 2 Florida Housing Markets Flagged for a Major Price Decline Risk
  • 24 Florida Housing Markets Could See Home Prices Drop by Early 2026
  • Is the Florida Housing Market Headed for Another Crash Like 2008?
  • Key Trends Shaping the Florida Housing Market in 2025
  • This Florida Housing Market Bucks National Trend With Declining Prices
  • Florida Housing Market Crash 2.0? Analyst Warns of 2008 Echoes
  • Tax Relief Proposed as Florida Housing Market Faces Deepening Crisis

Filed Under: Housing Market, Real Estate Market Tagged With: Cape Coral, Florida, Housing Market, housing market crash, Housing Market Trends

Mortgage Rates Today July 14, 2025: 30-Year FRM Goes Down by 2 Basis Points

July 14, 2025 by Marco Santarelli

Mortgage Rates Today - July 14, 2025: 30-Year FRM Drops, 15-Year FRM is Stable

As of today, July 14, 2025, mortgage rates have experienced a slight decline, with the average 30-year fixed mortgage rate at 6.84%, down 2 basis points from last week. In addition, the average 30-year fixed refinance rate is currently at 7.07%. These shifts could influence both potential homebuyers and current homeowners considering refinancing, especially in light of upcoming economic indicators.

Mortgage Rates Today July 14, 2025: 30-Year FRM Goes Down by 2 Basis Points

Key Takeaways

  • Current 30-Year Fixed Mortgage Rate: 6.84%
  • Current Refinance Rate for 30-Year Fixed Loans: 7.07%
  • 15-Year Fixed Mortgage Rate Stays Steady: 5.92%
  • Expectations: Rates may fluctuate based on inflation data and Federal Reserve decisions.

Current Mortgage Rates

Understanding the landscape of mortgage rates helps individuals make informed financial decisions. Here’s a detailed breakdown of the mortgage rates applicable as of July 14, 2025.

Table 1: Current Mortgage Rates by Loan Type

Loan Type Current Rate 1-Week Change APR APR Change
30-Year Fixed Rate 6.84% 0.00% 7.35% Up 0.05%
20-Year Fixed Rate 6.44% Down 0.04% 6.81% Down 0.09%
15-Year Fixed Rate 5.92% Up 0.04% 6.25% Up 0.07%
10-Year Fixed Rate 5.78% 0.00% 5.99% 0.00%
5-Year ARM 7.75% Down 0.13% 8.13% Down 0.01%
7-Year ARM 7.74% Up 0.16% 8.22% Up 0.13%

Source: Zillow

As highlighted in the table, the 30-year fixed mortgage rate remains at 6.84%, signaling a moment of relative stability and providing potential homebuyers a clear picture of current market conditions. The 15-year fixed mortgage rate is 5.92%, ideal for those looking for shorter-term solutions that can ultimately save substantial interest over time.

Current Refinance Rates

Refinancing can be a valuable financial strategy for homeowners looking to lower their monthly payments or tap into their home equity. Here are the current refinance rates for several loan types as of July 14, 2025:

Table 2: Current Refinance Rates by Loan Type

Loan Type Current Rate 1-Week Change APR APR Change
30-Year Fixed Refinance 7.07% Down 0.04% 7.35% Up 0.05%
20-Year Fixed Refinance 6.44% Down 0.04% 6.81% Down 0.09%
15-Year Fixed Refinance 5.92% Up 0.04% 6.25% Up 0.07%
10-Year Fixed Refinance 5.78% 0.00% 5.99% 0.00%
5-Year ARM Refinance 8.04% Up 0.12% 8.38% Up 0.25%
7-Year ARM Refinance 7.74% Up 0.16% 8.22% Up 0.13%

Source: Zillow

The 30-year fixed refinance rate stands at 7.07%, marking it as a strategic time for existing homeowners who wish to refinance their mortgages, especially if they can secure a more favorable rate than their existing ones.

Factors Influencing Mortgage Rate Trends

Many factors influence mortgage rates, and understanding these elements is crucial for making informed decisions. Here’s a look at the key influences on mortgage rates:

  1. Federal Reserve Decisions: The Federal Reserve plays a crucial role in influencing interest rates. Recently, the Fed has indicated potential federal funds rate cuts later in the year. Such actions could positively impact mortgage rates, as lower federal funds rates tend to lead to decreased borrowing rates for consumers. Market observers are paying close attention to the Fed’s actions as they can significantly dictate mortgage landscapes.
  2. Economic Indicators: Data releases on inflation, employment, and overall economic growth are closely monitored by the mortgage market. A strong report on the Consumer Price Index (CPI) can prompt rates to rise, while weaker economic indicators may lead to declines in mortgage rates. The market reacts quickly to these updates, and they can create volatility in mortgage rates.
  3. Market Demand: The dynamics of supply and demand for home loans can lead to fluctuations in rates. If demand persists despite current rates, lenders may need to adjust rates competitively to attract buyers. On the flip side, if demand weakens, mortgage rates may drop as lenders try to encourage borrowing.
  4. Geopolitical Events: Economic conditions don’t exist in a vacuum. Geopolitical factors, such as trade agreements or conflicts, can impact US economic stability and influence the decisions of the Fed. For example, changes in trade tariffs can cause inflation concerns, which may prompt the Fed to adjust interest rates.
  5. Personal Financial Situations: Each borrower’s qualifications and credit profiles play a significant role in determining the exact rate and terms they receive. Lenders evaluate factors such as credit score, debt-to-income ratio, and employment history before offering a mortgage rate.


Related Topics:

Mortgage Rates Trends as of July 13, 2025

Mortgage Rates Predictions for the Next 30 Days: July 3-August 3

Mortgage Rate Predictions for the Next 3 Years: 2026, 2027, 2028

Mortgage Rates Predictions for Next 90 Days: July-Sept 2025

Long-Term Projections

Looking into the future, experts predict that mortgage rates will likely hover between 6.5% and 6.8% for the remainder of July 2025, with fluctuations possible depending on economic reports and Federal Reserve announcements. Some analysts anticipate that gradual rate cuts in the next year or so could lead to rates dropping to around 5% by 2028, providing some relief for homebuyers and those looking to refinance.

Expert Opinions

In my view, the current mortgage and refinance rates present a compelling opportunity for homeowners and those looking to enter the market. The combination of slightly reduced rates and the potential for further declines makes this period attractive for both financing and refinancing. However, it’s crucial for buyers to stay informed about economic indicators and how they might influence future rates.

Additionally, as the housing market evolves, staying engaged with trends, economic signals, and lender offerings will empower borrowers to make timely and strategic decisions. While a lower rate can significantly save on long-term payments, making the best choice often requires consideration of personal financial situations and long-term stability.

Summary:

While the prevailing rates might seem daunting, they can be navigated successfully with the right knowledge and insight. For those looking to purchase or refinance, understanding current conditions and upcoming economic developments gives critical context to what lies ahead in their mortgage journey.

Invest Smarter in a High-Rate Environment

With mortgage rates remaining elevated this year, it's more important than ever to focus on cash-flowing investment properties in strong rental markets.

Norada helps investors like you identify turnkey real estate deals that deliver predictable returns—even when borrowing costs are high.

HOT NEW LISTINGS JUST ADDED!

Connect with a Norada investment counselor today (No Obligation):

(800) 611-3060

Get Started Now 

Also Read:

  • Will Mortgage Rates Go Down in 2025: Morgan Stanley's Forecast
  • Mortgage Rate Predictions 2025 from 4 Leading Housing Experts
  • 30-Year Fixed Mortgage Rate Forecast for the Next 5 Years
  • 15-Year Fixed Mortgage Rate Predictions for Next 5 Years: 2025-2029
  • Will Mortgage Rates Ever Be 3% Again in the Future?
  • Mortgage Rates Predictions for Next 2 Years
  • Mortgage Rate Predictions for Next 5 Years
  • Mortgage Rate Predictions: Why 2% and 3% Rates are Out of Reach
  • How Lower Mortgage Rates Can Save You Thousands?
  • How to Get a Low Mortgage Interest Rate?
  • Will Mortgage Rates Ever Be 4% Again?

Filed Under: Financing, Mortgage Tagged With: Interest Rate, mortgage, Mortgage Rate Trends, mortgage rates, Mortgage Rates Today

Mortgage Rates Predictions for the Next 90 Days: July to Sept 2025

July 13, 2025 by Marco Santarelli

Mortgage Rates Predictions for the Next 90 Days: July to Sept 2025

Are you thinking about buying a house or refinancing your mortgage? I know how important it is to keep a close eye on mortgage rates. Getting a good rate can save you a lot of money in the long run! So, what's the likely story for the next three months?

Based on current data and expert forecasts, I predict mortgage rates will likely stay in a fairly stable range between 6.5% and 6.8% for a 30-year fixed loan over the next 90 days (July to September 2025). There might be a slight dip, but don't expect any major changes. Let’s dive deeper into what’s driving these predictions and what it means for you.

Mortgage Rates Predictions for the Next 90 Days: July to Sept 2025

Where Mortgage Rates Stand Right Now

As we head into the summer of 2025, things are pretty interesting. If you look at the data from June 2025, the average 30-year fixed mortgage rate is bouncing around 6.8% to 7%. Sources like Freddie Mac reported a rate of 6.81% around mid-June. We saw some ups and downs earlier in the year, but lately, things have calmed down a bit.

The 15-year fixed mortgage rate is usually lower, and it's hovering around 6.0% to 6.2%. This one's also seen similar back-and-forth movements but seems to have found a stable level.

Now, a key thing to watch is the 10-year Treasury yield. It's a benchmark that strongly influences mortgage rates. As of late June 2025, it’s at 4.38%. Generally, mortgage rates are about 1.5 to 2 percentage points higher than this yield. The difference between Treasury yields and mortgage rates has widened a bit because of some uncertainties in the market.

Mortgage Rate Forecast: July, August, and September 2025

I've looked at several different forecasts from reliable sources to give you a good overview. Here's what they're saying about mortgage rates for the next 90 days:

30-Year Fixed Mortgage Rate Estimates

  • Long Forecast: This source expects a slight decrease each month.
    • July 2025: Average of 6.84%
    • August 2025: Average of 6.79%
    • September 2025: Average of 6.74%
  • Mortgage Bankers Association (MBA): Predicts an average of 6.7% for the third quarter of 2025.
  • Fannie Mae: Foresees a rate of 6.8% early in 2025, dropping down to 6.1% by the end. That’s a pretty gradual decline.
  • National Association of Home Builders (NAHB): They're looking at an annual average of 6.7% for 2025 and expecting things to stay steady through the summer.
  • National Association of Realtors (NAR): They’re a bit more optimistic, forecasting an annual average of 6.4% for 2025.
  • Realtor.com: Similar to NAR, they anticipate rates falling to 6.2% by the year's end, with an average of 6.3%.
  • Wells Fargo: They believe rates will stay consistent through the summer but might dip slightly by the end of the year, landing around 6.5%.

15-Year Fixed Mortgage Rate Estimates

  • Long Forecast:
    • July 2025: Average of 6.01%
    • August 2025: Average of 5.90%
    • September 2025: Average of 5.88%

Here's a quick summary in a table for easy reference:

Month 30-Year Fixed Rate (Average) 15-Year Fixed Rate (Average) Source
July 2025 6.84% 6.01% Long Forecast
August 2025 6.79% 5.90% Long Forecast
September 2025 6.74% 5.88% Long Forecast
Q3 2025 6.7% Not specified Mortgage Bankers Association

So, to sum it up, the predictions suggest that 30-year fixed mortgage rates will probably hang around 6.5% to 6.8%. The 15-year fixed rates should be a bit lower, around 5.88% to 6.01%. These forecasts line up with the current 10-year Treasury yield of 4.38%.

Related Topics:

Will Mortgage Rates Go Down After No Cut by Fed in June 2025?

What's Causing These Mortgage Rate Projections?

A bunch of things play a role in where mortgage rates are headed. Let's take a look:

  1. The Federal Reserve's Actions: The Federal Reserve has held its federal funds rate steady at 4.25%-4.5% for a while. This indicates they're being cautious, watching inflation closely. Although some anticipate potential rate cuts later in the year, the Fed's decision to hold steady suggests mortgage rates won't dramatically decrease in the near future.
  2. Inflation: Inflation has cooled a bit, but it's still a concern. The Fed wants to get it down to 2%, so any unexpected inflation spikes could prevent them from cutting rates and keep mortgage rates high.
  3. Economic Growth: Although the US economy is pretty tough, with a good job market, there are signs of it slowing down. Slower growth might eventually lead to lower interest rates, but for now, we're in a balancing act.
  4. Global Events: Things happening around the world, like geopolitical tensions or changes in trade policies, can affect oil prices and inflation, which in turn impact mortgage rates.
  5. Treasury Yields: The 10-year Treasury yield is a major influence. If it changes significantly, it could directly impact mortgage rates.

What Should You Do If You're Buying a Home or Refinancing?

For Homebuyers:

Given the expected stability in mortgage rates, waiting for big drops might not be the best plan in the next three months. If you find a good rate, it might be worth locking it in. This protects you in case rates unexpectedly go up. Don’t forget to shop around with different lenders to find the best deal. Even small differences in rates can lead to significant savings over the life of the loan. I've seen people save thousands of dollars simply by doing a bit of comparison shopping.

For Homeowners Considering Refinancing:

Think about whether the current rates (6.5% to 6.8%) would save you a significant amount compared to your current mortgage rate. If your current rate is quite a bit higher, refinancing could be a good idea. Just remember to factor in closing costs and how long you plan on staying in the home. There are some great mortgage calculators online that can help you figure out potential savings. Also, keep an eye on what the Federal Reserve announces, and stay updated on economic indicators like inflation.

My Two Cents

Honestly, I believe the key here is patience and careful planning. If you're a potential homebuyer, don’t get too caught up waiting for the “perfect” rate, because chasing that elusive goal can sometimes lead to missed opportunities. And if you're a homeowner considering refinancing, crunch the numbers and see if it makes sense for your specific financial situation.

It also might be good to consult a trusted Mortgage broker. They can help you navigate the complexities of the mortgage market and find the best options for your unique circumstances.

Final Thoughts: In short, mortgage rates are expected to stay relatively consistent between July and September 2025. But remember, things can change, so staying informed is crucial.

Invest Smarter in a High-Rate Environment

With mortgage rates remaining elevated this year, it's more important than ever to focus on cash-flowing investment properties in strong rental markets.

Norada helps investors like you identify turnkey real estate deals that deliver predictable returns—even when borrowing costs are high.

HOT NEW LISTINGS JUST ADDED!

Connect with a Norada investment counselor today (No Obligation):

(800) 611-3060

Get Started Now 

Also Read:

  • Will Mortgage Rates Go Down in 2025: Morgan Stanley's Forecast
  • Expect High Mortgage Rates Until 2026: Fannie Mae's 2-Year Forecast
  • Mortgage Rate Predictions 2025 from 4 Leading Housing Experts
  • Mortgage Rates Forecast for the Next 3 Years: 2025 to 2027
  • 30-Year Mortgage Rate Forecast for the Next 5 Years
  • 15-Year Mortgage Rate Forecast for the Next 5 Years
  • Why Are Mortgage Rates Going Up in 2025: Will Rates Drop?
  • Why Are Mortgage Rates So High and Predictions for 2025
  • Will Mortgage Rates Ever Be 3% Again in the Future?
  • Mortgage Rates Predictions for Next 2 Years
  • Mortgage Rate Predictions for Next 5 Years
  • Mortgage Rate Predictions: Why 2% and 3% Rates are Out of Reach
  • How Lower Mortgage Rates Can Save You Thousands?
  • How to Get a Low Mortgage Interest Rate?
  • Will Mortgage Rates Ever Be 4% Again?

Filed Under: Financing, Mortgage Tagged With: Interest Rate, mortgage, Mortgage Rate Trends, mortgage rates

Houston Housing Market: Trends and Forecast 2025-2026

July 13, 2025 by Marco Santarelli

Houston Housing Market: Trends and Forecast 2025-2026

Is the Houston housing market booming or cooling down? The answer, as of June 2025, is a bit of both. While single-family home sales are up and inventory has surged to record levels, affordability challenges persist, creating a complex situation for buyers and sellers alike. In short, the Houston housing market is experiencing a surge in activity fueled by record inventory, but affordability remains a key concern.

As an investor in the Houston area for over 15 years, I've seen the market go through its ups and downs. This latest data from the Houston Association of Realtors (HAR) has me thinking about what it all really means for people in our community. Let's dive into the details, break down the numbers, and discuss what you should be watching for if you're thinking of buying, selling, or just keeping an eye on your investment.

Current Houston Housing Market Trends in 2025

Record Inventory Meets Strong Demand: A Double-Edged Sword

One of the most significant takeaways from the June 2025 HAR report is the unprecedented level of active listings. Active listings were up a whopping 31.8% year-over-year, reaching the highest point ever recorded by HAR. That's great news for buyers, right? More choices, more negotiating power.

Well, sort of. While increased inventory undoubtedly provides more options, it also suggests a potential shift in the market dynamic. Here's a simple breakdown:

  • Pros (for Buyers):
    • More homes to choose from
    • Potentially less competition, giving you more time to make a decision
    • Possible price negotiations due to increased supply
  • Cons (for Sellers):
    • Longer time to sell a property
    • Increased competition from other sellers
    • Potential pressure to lower prices to attract buyers

The rise in inventory is happening alongside an increase in single-family home sales, which rose 12.5 percent year-over-year in June. This indicates that despite economic headwinds, people are still eager to buy in Houston. The question is, can they afford it?

Price Points: A Tale of Two Markets

The HAR report reveals a crucial distinction between the median and average home prices.

  • Median Home Price: Statistically unchanged at $346,651.
  • Average Home Price: Increased 4.4% to a record $450,235.

The average sales prices recorded show that the top end of the market had a lot of activity but the bulk of other price points were rather muted.

HAR Chair Shae Cottar with LPT Realty correctly stated that the median price is a more reliable gauge of overall market conditions. The fact that it remained statistically flat suggests that, broadly speaking, prices aren't experiencing significant upward pressure.

However, that record-breaking average price tells another story. It's being heavily influenced by robust sales in the luxury market (homes priced $1 million and above), which saw a massive 40.6% increase. So, while the overall market is stable, the high-end segment is booming.

Here's what that means for you:

  • If you're looking to buy a luxury home: Be prepared for competition and potentially higher prices.
  • If you're looking to buy a home in a more affordable price range: Take advantage of the increased inventory and negotiate.
  • If you're looking to sell a luxury home: This could be a great time to list your property.
  • If you're looking to sell a home in a more affordable price range: Be realistic about your pricing and make sure your home is in top condition to stand out from the competition.
Price Range Year-over-Year Change in Sales
$1 – $99,999 increased 24.0 percent
$100,000 – $149,999 increased 0.6 percent
$150,000 – $249,999 increased 3.4 percent
$250,000 – $499,999 increased 10.6 percent
$500,000 – $999,999 increased 14.2 percent
$1M and above increased 40.6 percent

Housing Affordability: The Elephant in the Room

Despite the positive trends in sales and inventory, affordability remains a major concern. As HAR Chief Economist Dr. Ted C. Jones points out, home prices are softening slightly due to the lowest affordability in 40 years.

While mortgage rates have dipped slightly (from 6.92% in June 2024 to 6.82% in June 2025), they're still relatively high compared to the near-zero rates we saw just a few years ago. This, combined with rising property taxes and insurance costs, is stretching many Houstonians' budgets thin.

While Houston has historically been more affordable than many other major US cities, the gap is closing. Wages haven't kept pace with the rapid increase in home prices over the past few years. The dream of homeownership is becoming increasingly out of reach for many.

Townhomes and Condominiums: A Different Story

While the single-family home market is showing signs of strength, the townhome and condominium market in Houston is facing a different reality. Sales have been declining for five consecutive months, falling 4.4% year-over-year in June. Both the average and median prices have also decreased.

  • Average Price: Down 3.3% to $261,702
  • Median Price: Down 4.6% to $230,000

Meanwhile, inventory levels have surged, reaching the highest level since September 2011. This suggests that the townhome/condo market is oversupplied, putting downward pressure on prices.

Several factors could be contributing to this trend:

  • Increased preference for single-family homes: Especially among families with children, the desire for more space and a backyard remains strong.
  • Concerns about HOA fees and restrictions: Some buyers are hesitant to purchase townhomes or condos due to the additional costs and regulations associated with homeowners' associations.
  • Shifting demographics: Changes in population and lifestyle preferences could also be influencing demand for different types of housing.

If you're considering buying or selling a townhome or condo in Houston, it's crucial to be aware of these trends. Buyers may find attractive deals, while sellers may need to adjust their expectations and be prepared to offer incentives.

What's Next for the Houston Housing Market?

  • Interest Rates: The direction of interest rates will have a significant impact on affordability and buyer demand. If rates continue to decline, it could provide a boost to the market. However, if they rise again, it could further dampen demand.
  • Economic Growth: Houston's economy remains relatively strong, driven by the energy sector and other industries. Continued job growth will support housing demand. However, a slowdown in the economy could have a negative impact.
  • Inventory Levels: The high level of inventory will likely continue to put pressure on prices, especially in certain segments of the market.
  • Demographic Trends: As Houston's population continues to grow and diversify, housing preferences and demand patterns will evolve.

Houston Housing Market Forecast 2025-2026: What's Coming Up?

Now you're probably wondering about the Houston housing market forecast. The short answer: While prices have cooled down a bit, experts are predicting a slow, steady decline in the near future but definitely not a crash.

Let's dive into the details and see what the data tells us about where things are headed in Houston's real estate world.

Is Houston's Housing Market Slowing Down?

You bet! Right now, the average home value in the Houston-The Woodlands-Sugar Land area is around $313,936. That's about a 1.6% decrease over the past year. And homes are going to pending in an average of 29 days. Source: Zillow

What's the Near-Term Forecast Saying?

Zillow puts out regular forecasts, and here’s what they’re predicting for the Houston area:

Timeframe Projected Change
June 2025 -0.3%
August 2025 -0.7%
May 2025 to May 2026 -1.8%

Basically, expect a gradual dip in home values over the next year. These dips are still much better than the crash a lot of people were predicting last year.

Houston vs. Other Texas Cities

How does Houston stack up against other major cities in Texas? Let's take a peek (Source: Zillow):

City Forecasted Change by June 2025 Forecasted Change by August 2025 Forecasted Change from May 2025-May 2026
Dallas -0.6% -1.5% -2.2%
Houston -0.3% -0.7% -1.8%
San Antonio -0.4% -1.2% -3.2%
Austin -0.8% -2.4% -4.2%
McAllen -0.2% -0.1% 0.9%
El Paso 0% 0% 0.9%
Killeen -0.2% -0.7% -1%
Corpus Christi -0.4% -1.2% -4.2%
Brownsville 0% -0.1% 0.5%
Beaumont -0.4% -1.6% -6.2%

Compared to cities like Austin and Dallas, the Houston housing market is holding reasonably steady.

What About the National Outlook?

It's not just about Houston! The overall US housing market plays a role too. Lawrence Yun, the Chief Economist at the National Association of Realtors, thinks things are looking up nationwide. [Source: NAR]

Here's what he's predicting:

  • Existing Home Sales: Up 6% in 2025 and 11% in 2026.
  • New Home Sales: Up 10% in 2025 and 5% in 2026.
  • Median Home Prices: Up 3% in 2025 and 4% in 2026.
  • Mortgage Rates: Averaging 6.4% in the second half of 2025 and 6.1% in 2026.

If interest rates come down as predicted, that could really give the market a boost.

So, Will Home Prices Drop in Houston? Will It Crash?

Based on the data, a major crash in Houston seems unlikely. We're more likely to see a slight softening of prices over the next year.

My Personal Take for 2026

If mortgage rates do come down as expected, I believe 2026 will be a more stable year for the Houston housing market. We might even see prices start to tick upwards again as affordability improves and more people jump back into the market. But I feel it will likely depend on whether or not there is enough inventory to meet demand.

Should You Invest in the Houston Real Estate Market?

The city of Houston has long been a beacon for real estate investors seeking opportunities for long-term growth. As one of the largest and most dynamic cities in the United States, Houston offers a unique landscape for those looking to make strategic real estate investments. In this essay, we'll explore the factors that make Houston a promising destination for long-term real estate investment and provide insights into its outlook for sustainable growth.

Economic Resilience

One of the fundamental factors that underpin Houston's real estate investment potential is its economic resilience. Houston is home to a diverse range of industries, including energy, healthcare, manufacturing, and aerospace. Its role as the energy capital of the world has historically been a significant driver of economic activity.

While energy markets can be cyclical, Houston's economy has shown remarkable resilience even in the face of energy price fluctuations. This economic diversity serves as a stabilizing force for real estate investors, reducing the risk associated with economic downturns in any single sector.

Population Growth

Houston has consistently experienced population growth over the years. This demographic expansion is driven by several factors, including a robust job market, affordable housing, and a high quality of life. The city's attractiveness to both domestic and international migrants bodes well for long-term real estate investment. As the population continues to grow, the demand for housing and commercial properties is expected to follow suit, creating a reliable source of rental income and property appreciation for investors.

Infrastructure Development

Houston has made significant investments in infrastructure development. The city's commitment to improving transportation, public amenities, and urban planning has enhanced its livability and attractiveness. Infrastructure investments not only make the city a better place to live but also contribute to increasing property values. As Houston continues to expand and modernize its infrastructure, investors can expect to see a positive impact on their real estate holdings in the long term.

Real Estate Diversity

Houston's real estate market offers a diverse range of investment opportunities. Whether you're interested in residential, commercial, industrial, or mixed-use properties, Houston has options to suit various investment strategies. The city's size and varied neighborhoods provide investors with choices to tailor their portfolios to their specific goals. This diversity allows for risk mitigation through portfolio diversification, a key strategy for long-term real estate investors.

Houston's Top 10 Hotspots for Rising Home Values

Houston's real estate market is a diverse tapestry, offering a range of neighborhoods catering to various lifestyles and budgets. But for those seeking promising investment opportunities, specific areas are projected to see significant home value appreciation. Here's a closer look at the top 10 contenders (Neighborhoodscout).

  1. Gulfgate/Riverview/Pine Valley East: This revitalizing pocket on Houston's east side boasts a mix of affordable housing options, proximity to downtown, and ongoing development projects. These factors are fueling a surge in investor interest and property value appreciation.
  2. Lawndale/Wayside South: Located southeast of downtown, this area is undergoing a transformation. Historic bungalows are being restored, attracting young professionals and families. This growing demand is likely to push home values upwards.
  3. Downtown Southeast: As Houston's urban core continues to expand, the southeastern quadrant near Minute Maid Park is witnessing a development boom. New apartment buildings, office spaces, and revitalized historic structures are drawing residents and businesses alike. This confluence of factors positions the area for significant home value appreciation.
  4. Gulfton South: This established neighborhood southwest of downtown offers a multicultural vibe and a variety of housing options, from single-family homes to apartments. The area benefits from easy access to major freeways and proximity to the Medical Center. With its affordability and growing popularity, Gulfton South is poised for steady home value growth.
  5. Second Ward East: Steeped in history, Second Ward East is experiencing a renaissance. Art galleries, restaurants, and trendy shops are transforming the neighborhood into a vibrant destination. As the area attracts a new wave of residents, expect home values to rise alongside its growing appeal.
  6. Close In: This central district encompasses a diverse range of neighborhoods, each with its own unique character. Its proximity to downtown and eclectic offerings are propelling home value appreciation across the area.
  7. Second Ward: Once a predominantly industrial area, Second Ward is undergoing a complete overhaul. New developments, art studios, and a burgeoning nightlife scene are attracting residents, leading to anticipated growth in home values.
  8. Greenway/Upper Kirby Area West: This prestigious enclave on the west side of Houston boasts luxury high-rises, single-family homes, and high-end shopping. Its established affluence and desirability are likely to continue driving home values upwards.
  9. Second Ward West: Once industrial, this area is transforming with converted lofts, art studios, and a growing young professional scene. Its proximity to downtown and development potential position it for rising home values.
  10. South Main: South Main's revitalization is well underway, with historic buildings being restored and repurposed for creative uses. This influx of investment and trendy establishments suggests promising prospects for home value appreciation.

By understanding the unique dynamics of these top neighborhoods, you can make informed decisions about where to invest in Houston's ever-evolving real estate landscape. Remember, consulting with a local real estate expert can provide valuable insights into specific neighborhoods and their potential for future growth.

Conclusion: Houston's Promise for Long-Term Real Estate Investment

When considering the outlook for long-term real estate investment, Houston stands out as a city with immense potential. Its economic resilience, population growth, infrastructure development, and real estate diversity create a fertile ground for investors seeking sustainable and reliable returns. The city's track record of weathering economic challenges and its proactive approach to urban development positions it as an attractive destination for those who value long-term real estate investments. As Houston continues to evolve and expand, it will likely remain a shining star in the constellation of real estate investment opportunities.

Invest Smart in Houston’s Evolving Market

With record-high inventory and rising buyer activity, Houston is showing signs of both opportunity and caution.

Norada helps you navigate this mixed market with access to turnkey investment properties that balance strong demand with long-term affordability potential.

HOT NEW LISTINGS JUST ADDED!

Talk to a Norada investment counselor today (No Obligation):

(800) 611-3060

Get Started Now 

Recommended Read:

  • Houston Real Estate Market Forecast 2025: What to Expect
  • Houston Real Estate Investment: Should You Invest in Houston?
  • Housing Market Trends: Big Investors Buy in Houston, Atlanta, Dallas, Charlotte
  • Best Houston Neighborhoods To Buy Investment Properties
  • 17 Facts That Make Houston the Best City in America
  • Texas Housing Market: Prices, Trends, Predictions 2024-2025

Filed Under: Growth Markets, Housing Market, Real Estate Investments Tagged With: Housing Market, Houston

Mortgage Rates Predictions for the Next 30 Days: July 3-August 3

July 13, 2025 by Marco Santarelli

Mortgage Rates Predictions for the Next 30 Days: July 3-August 3

Are you wondering about mortgage rate predictions for the next 30 days? Well, based on the latest data, you can expect moderate stability. Expect mortgage rates to stay above 6.5% for the immediate future. They might fluctuate a bit, but signs point to them remaining near where they are now. Let's dive into the details and see what's influencing these predictions.

Mortgage Rate Predictions for the Next 30 Days: What to Expect

Recent Trends: A Glimmer of Hope?

Here's some good news! As of July 3, 2025, the average 30-year fixed-rate mortgage dipped to 6.67%. That's a welcome change and the fifth consecutive week of decline. This is the biggest weekly drop we've seen since early March!

Take a look at the numbers:

  • 30-Year Fixed-Rate Mortgage:
    • Current Rate: 6.67%
    • Weekly Change: -0.1%
    • Yearly Change: -0.28%
    • Monthly Average: 6.77%
    • 52-Week Average: 6.68%
    • 52-Week Range: 6.08% – 7.04%
  • 15-Year Fixed-Rate Mortgage:
    • Current Rate: 5.8%
    • Weekly Change: -0.09%
    • Yearly Change: -0.45%
    • Monthly Average: 5.9%
    • 52-Week Average: 5.86%
    • 52-Week Range: 5.15% – 6.27%

While this decline is encouraging, it's important to understand what's behind it and whether it's likely to continue.

What's Driving Mortgage Rates?

Several factors constantly tug and pull on mortgage rates. Let’s break down the main players:

  • The Federal Reserve (The Fed): This is a big one! The Fed controls monetary policy, which includes setting the federal funds rate. This rate influences what banks charge each other for short-term loans, and that ripples out to affect other interest rates, including mortgage rates.
  • Economic Data: Things like job growth, inflation, and GDP growth all play a role. Strong economic data can suggest the Fed might raise interest rates to prevent the economy from overheating, while weak data might suggest the opposite.
  • Inflation: This is a major concern. If inflation is high, the Fed is more likely to keep interest rates elevated to bring it back down. The Fed aims to maintain a balance between controlling inflation and ensuring a healthy labor market.
  • The 10-Year Treasury Yield: This is the yield (return) on a 10-year U.S. government bond. Mortgage rates tend to track the 10-year Treasury yield pretty closely because it reflects investors' expectations for the economy and inflation.
  • Geopolitical Events: Unexpected events around the world, like wars or political instability, can create uncertainty and affect investor sentiment, which can then impact interest rates.

The May Jobs Report and the Fed's Dilemma

The May jobs report revealed that the pace of job creation is slowing, adding 139,000 jobs, which is fewer than in previous months but still indicative of ongoing economic activity.

  • Slowing Job Growth:
    • May job numbers came in lower than previous months but remain positive.

Economists suggest that the Fed may be in a “wait and see” mode at the July meeting, especially if businesses continue expanding payrolls at the current rate. There's uncertainty surrounding the timing of rate cuts. The report's implications for inflation and any potential effects of tariffs will likely be closely monitored.The Fed emphasizes that monetary policy decisions are guided by objective economic data, not political considerations.


Related Topics:

Will Mortgage Rates Drop or Increase in July 2025: Key Predictions

Mortgage Rate Predictions for the Next 3 Years: 2026, 2027, 2028

Mortgage Rates Predictions for Next 90 Days: July-Sept 2025

What's the Outlook for the Next 30 Days?

Okay, so let's put all this together and see if we can get a clearer picture of what to expect in the coming weeks.

The overall consensus seems to be that mortgage rates will likely remain relatively stable. While the recent dip is encouraging, I don't expect a dramatic drop in the next 30 days. Here’s what experts are predicting:

  • Moderation and Stability: Mortgage rates are expected to remain relatively stable and moderate throughout July.
  • “Higher for Longer” Environment: Expect mortgage rates to stay above 6.5% for the rest of 2025.
  • A “Wait and See” Approach: The Fed will likely monitor the economic data before making any decisions on rate cuts at its July meeting.
  • Inflation Concerns: These remain a key factor in keeping rates elevated. Trade measures and geopolitical events contribute to market volatility and could exert upward pressure on rates.

Considering the Fed's cautious stance, and the potential for inflation to remain sticky, it's more likely that rates will stay within the 6.5% to 7% range for the next month.

Here are some average predictions for 30-year fixed mortgages in Q3 2025 that experts have provided:

Source Prediction
Fannie Mae 6.6%
National Association of Home Builders 6.75%
Mortgage Bankers Association 6.80%
Wells Fargo 6.65%
National Association of Realtors 6.4%
Average Prediction 6.64%

My Personal Take

Based on everything I've been following, I tend to agree with the general outlook. While the recent decline is a step in the right direction, I don't think it signals a major shift just yet. The Fed is clearly going to be very careful about any further rate cuts, and as such I don’t expect to see any big changes in mortgage rates.

What This Means for You

  • For Buyers: If you're thinking of buying a home, it's wise to get pre-approved for a mortgage so you know exactly how much you can afford. And don't try to time the market too much. Instead, focus on finding a home that fits your needs and budget.
  • For Sellers: If you're planning to sell, now is a pretty good time. While rates might be slightly higher than they were a few years ago, there are still plenty of buyers out there.
  • For Homeowners: If you already have a mortgage, it may or may not be the best time to refinance. Run the numbers to make sure it makes sense for your financial situation.

The Bottom Line: Mortgage rates are always subject to change, so it is important to stay updated with the latest news. I can't say with certainty what will happen in the next 30 days, but based on the available data, I think it's reasonable to expect rates to remain within the 6.5% to 7% range.

Invest Smarter in a High-Rate Environment

With mortgage rates remaining elevated this year, it's more important than ever to focus on cash-flowing investment properties in strong rental markets.

Norada helps investors like you identify turnkey real estate deals that deliver predictable returns—even when borrowing costs are high.

HOT NEW LISTINGS JUST ADDED!

Connect with a Norada investment counselor today (No Obligation):

(800) 611-3060

Get Started Now 

Also Read:

  • Will Mortgage Rates Go Down in 2025: Morgan Stanley's Forecast
  • Mortgage Rate Predictions 2025 from 4 Leading Housing Experts
  • 30-Year Fixed Mortgage Rate Forecast for the Next 5 Years
  • 15-Year Fixed Mortgage Rate Predictions for Next 5 Years: 2025-2029
  • Will Mortgage Rates Ever Be 3% Again in the Future?
  • Mortgage Rates Predictions for Next 2 Years
  • Mortgage Rate Predictions for Next 5 Years
  • Mortgage Rate Predictions: Why 2% and 3% Rates are Out of Reach
  • How Lower Mortgage Rates Can Save You Thousands?
  • How to Get a Low Mortgage Interest Rate?
  • Will Mortgage Rates Ever Be 4% Again?

Filed Under: Financing, Mortgage Tagged With: Interest Rate, mortgage, Mortgage Rate Trends, mortgage rates, Mortgage Rates Today

Mortgage Rates Today – July 13, 2025: Rates Spike Overall Compared to Last Week

July 13, 2025 by Marco Santarelli

Mortgage Rates Today - July 13, 2025: Rates Spike Overall Compared to Last Week

As of today, July 13, 2025, mortgage rates remain fairly stable with slight increases in some areas while refinance rates have shown signs of decline. According to Zillow, the national average for a 30-year fixed mortgage is at 6.87%, up from the previous 6.77% last week. Meanwhile, the average for a 30-year fixed refinance rate has decreased to 7.06% from 7.10%.

Mortgage Rates Today – July 13, 2025: Rates Spike Overall Compared to Last Week

Key Takeaways

  • 30-Year Fixed Mortgage Rate: 6.87% (up 0.10% from last week).
  • 15-Year Fixed Rate: 5.90% (up 0.10%).
  • 5-Year ARM Rate: 7.86% (down 0.04%).
  • 30-Year Fixed Refinance Rate: 7.06% (down 0.04%).
  • Federal Reserve’s potential rate cuts could influence future mortgage rates, showing mixed signals for buyers.

Current Mortgage Rates Overview

Today's mortgage rates reflect a balance between buyer demand and economic factors that impact lending costs. The national averages cover both fixed and adjustable-rate mortgages (ARMs), as well as government loans. Understanding the differences between the loan types is essential for making informed decisions.

Table: Current Mortgage Rates as of July 13, 2025

Loan Type Rate 1-Week Change APR 1-Week Change
30-Year Fixed Rate 6.87% +0.10% 7.32% +0.09%
20-Year Fixed Rate 6.44% +0.09% 6.81% +0.12%
15-Year Fixed Rate 5.90% +0.10% 6.20% +0.09%
10-Year Fixed Rate 5.78% +0.17% 5.99% +0.22%
7-Year ARM 7.74% +0.39% 8.22% +0.42%
5-Year ARM 7.86% -0.04% 8.11% -0.12%

Exploring Refinance Rates

Refinancing is an option for homeowners looking to lower their monthly payments or tap into equity for cash needs. The current refinancing landscape shows mixed results, with some rates falling while others remain steady. Understanding the rationale behind these changes can empower homeowners to make thoughtful decisions about their financial future.

Table: Current Refinance Rates as of July 13, 2025

Loan Type Rate 1-Week Change APR 1-Week Change
30-Year Fixed Refinance Rate 7.06% -0.04% 7.32% +0.09%
20-Year Fixed Refinance Rate 6.44% +0.09% 6.81% +0.12%
15-Year Fixed Refinance Rate 5.92% -0.11% 6.20% +0.09%
10-Year Fixed Refinance Rate 5.78% +0.17% 5.99% +0.22%
7-Year ARM Refinance 7.74% +0.39% 8.22% +0.42%
5-Year ARM Refinance 8.04% -0.02% 8.11% -0.12%

Impact of Economic Factors on Mortgage Rates

Several key economic indicators and policies influence mortgage rates. The Federal Reserve's decisions, including rate cuts and economic growth projections, create ripples throughout the mortgage market, directly affecting consumer borrowing costs.

Federal Reserve's Recent Discussions

During the Fed's recent meeting in June 2025, officials discussed potential cuts to interest rates, with some members advocating for immediate action. The predictions indicate that the federal funds rate could fall close to 3.9% by the end of 2025, significantly impacting mortgage rates.

  • Rate Cuts: If the Fed reduces rates, mortgage lenders may adjust their offerings, leading to lower rates for consumers. This is particularly beneficial for new homebuyers and those considering refinancing.
  • Economic Outlook: A slower economy, coupled with rising unemployment, typically prompts the Fed to cut rates in an attempt to stimulate growth. Current projections suggest unemployment might rise to 4.5% in the coming months, which could influence Fed policy.

Economic Climate Influences Rates

  • Inflation and Tariffs: Rising tariffs have contributed to inflation, creating uncertainty in the market. Fed Chair Jerome Powell indicated that the Fed views this as a temporary shock, complicating decisions regarding rate hikes or cuts.
  • Economic Growth: The GDP growth forecast for 2025 is around 1.4%, lower than previous expectations. This slowdown can lead to lower consumer demand for housing, which in turn affects mortgage rates.


Related Topics:

Mortgage Rates Trends as of July 12, 2025

Mortgage Rates Predictions for the Next 30 Days: July 3-August 3

Mortgage Rate Predictions for the Next 3 Years: 2026, 2027, 2028

Mortgage Rates Predictions for Next 90 Days: July-Sept 2025

Current Trends and Projections

The recent stability in mortgage rates offers a unique opportunity for potential homebuyers and current homeowners alike. While rates remain elevated, the overall trend hints at possible future adjustments, depending on the Fed’s actions.

  • Market Predictions: Some analysts suggest that if economic conditions do not improve, mortgage rates are likely to decline over the next few years. Predominantly, the consensus is that rates could stabilize around 5% by 2028 if the Fed follows through with anticipated cuts.

Personal Observations on Future Trends

Based on observations of various market behaviors, consumers should closely monitor inflation trends and employment rates since they affect Fed projections. A positive turn in either area could stimulate more favorable mortgage rates.

Navigating the Mortgage Process

For both first-time buyers and those considering refinancing, understanding these rates and the broader market context is essential. Whether you are planning to buy a home, invest in property, or refinance your existing mortgage, knowing where rates currently stand can help you make informed decisions that align with your long-term financial goals.

How Mortgage Rates Are Determined

Mortgage rates are influenced by various factors including:

  • Lender Policies: Individual lenders may offer different rates based on their financial situations and policies.
  • Credit Scores: Borrowers with higher credit scores typically receive better rates.
  • Loan-to-Value Ratio (LTV): A lower LTV can often secure a better rate, as it indicates less risk to the lender.

Summary:

In the end, today’s mortgage rates reflect a stable yet responsive market that is sensitive to economic changes. While potential rate reductions loom on the horizon, buyers and homeowners should evaluate their personal circumstances and financial goals carefully. Understanding the nuances of these rates can lead to more strategic decisions that maximize opportunities in real estate.

Invest Smarter in a High-Rate Environment

With mortgage rates remaining elevated this year, it's more important than ever to focus on cash-flowing investment properties in strong rental markets.

Norada helps investors like you identify turnkey real estate deals that deliver predictable returns—even when borrowing costs are high.

HOT NEW LISTINGS JUST ADDED!

Connect with a Norada investment counselor today (No Obligation):

(800) 611-3060

Get Started Now 

Also Read:

  • Will Mortgage Rates Go Down in 2025: Morgan Stanley's Forecast
  • Mortgage Rate Predictions 2025 from 4 Leading Housing Experts
  • 30-Year Fixed Mortgage Rate Forecast for the Next 5 Years
  • 15-Year Fixed Mortgage Rate Predictions for Next 5 Years: 2025-2029
  • Will Mortgage Rates Ever Be 3% Again in the Future?
  • Mortgage Rates Predictions for Next 2 Years
  • Mortgage Rate Predictions for Next 5 Years
  • Mortgage Rate Predictions: Why 2% and 3% Rates are Out of Reach
  • How Lower Mortgage Rates Can Save You Thousands?
  • How to Get a Low Mortgage Interest Rate?
  • Will Mortgage Rates Ever Be 4% Again?

Filed Under: Financing, Mortgage Tagged With: Interest Rate, mortgage, Mortgage Rate Trends, mortgage rates, Mortgage Rates Today

Mortgage Rates Predictions for the Next 6 Months: August to December 2025

July 13, 2025 by Marco Santarelli

Mortgage Rates Predictions for the Next 6 Months: August to December 2025

Wondering where mortgage rates are headed? You're not alone. After a period of ups and downs, everyone wants to know: What will Mortgage Rates be from August to December 2025? Good news, things are looking brighter! My detailed analysis, drawing from the best sources, suggests that mortgage rates will likely hover in the mid-6% range, gradually decreasing to around 6.3%-6.5% by December 2025.

Mortgage Rates Predictions for the Next 6 Months: August to December 2025

Since the start of the year, high mortgage rates have made buying a home more difficult. But don't lose hope! Let’s get a grasp on the current situation, review the trends, and see what experts are thinking.

The Current State of Mortgage Rates

As of July 10, 2025, here’s where we stand:

  • 30-Year Fixed Rate Mortgage (FRM): Averaging 6.72%
  • 15-Year FRM: Averaging 5.86%

These numbers, per Freddie Mac, paint a clear picture. While rates are lower than the 52-week high of 7.04%, they're still considerably higher than the ridiculously low rates we saw a few years ago. It’s like when gas prices go up – you remember the cheaper days!

Metric 30-Year FRM 15-Year FRM
Current Rate 6.72% 5.86%
1-Week Change +0.05 +0.06
1-Year Change -0.17 -0.31
Monthly Average 6.74% 5.88%
52-Week Average 6.68% 5.86%
52-Week Range 6.08%–7.04% 5.15%–6.27%

For weeks, the 30-year FRM has stayed below 7%. This shows you that while there are fluctuations, we’ve stepped away from the volatility seen last year.

What’s Coming? Mortgage Rate Predictions for August to December 2025

Let's look at what the big players are saying about where rates are headed. No more stress.

  1. Long Forecast:
    • They're predicting a gradual dip in the coming months.
    • August 2025: Average 6.59%
    • December 2025: Average 6.29%
  2. National Association of REALTORS (NAR):
    • NAR's Chief Economist, Lawrence Yun, predicts an average of 6.4% for the second half of 2025.
    • Yun thinks we're heading for “brighter days” in housing.
  3. Fannie Mae:
    • They're predicting that 30-year mortgage rates will end 2025 at 6.5%, and go down to 6.1% by the end of 2026.
  4. Mortgage Bankers Association (MBA):
    • They anticipate rates near 6.8% through September 2025, then gradually decreasing to 6.7% by year-end.
    • Sometime in 2026 they may stabilize to 6.3%.
  5. Morgan Stanley:
    • Strategists believe mortgage rates could fall, which would improve how people can afford homes.
    • A slowing economy might bring even lower rates in 2026.
  6. Freddie Mac:
    • They said rates would stay “higher for longer.”
    • They do see increased housing activity as buyers get used to the current rates.
  7. Other Voices:
    • Forbes Advisor: Rates might ease slowly due to Federal Reserve caution and economic policies.
    • U.S. News: Rates might stay range between 6.5% and 7% through 2025.
    • The Mortgage Reports: They say there’s a downward trend in July. They cite NAR’s prediction of 6.4% Q3.

Here’s a Quick Look at the Forecasts:

Source Prediction for December 2025 (Approximate)
Long Forecast 6.29%
National Association of REALTORS 6.4% (Average for Second Half)
Fannie Mae 6.5%
Mortgage Bankers Association 6.7%

The takeaway? Most experts believe rates will stay in the mid-6% range, perhaps drifting down to 6.3%-6.5% by year's end. I wouldn't expect any big drops below 6%.

What's Driving These Predictions?

A bunch of things affect Mortgage Rate Predictions for the Next 6 Months: August to December 2025.

  • Federal Reserve and Monetary Policy:
    • The Federal Reserve's federal funds rate affects mortgage rates indirectly. Any rate cut that the Fed may make could lower mortgage rates, but potential policy changes could push rates higher.
  • Inflation is still a factor:
    • Inflation is super important. Slowly cooling inflation rates supports lowering the rates. You may want to keep an eye on policies and how they impact potential pushing of rates.
  • The Health of the Economy:
    • If the economy is doing well, rates might stay higher. If it slows down, then the Fed might cut rates, which is good for people borrowing money.
  • Housing Market Conditions Matter:
    • We have a major shortage of houses. This “rate lock-in effect” makes it hard to find houses.

    Homeowners don’t want to sell if they have low rates

    *   If rates go down, more houses might be available.
    
  • Global Money Factors:
    • Everything from oil prices to political problems can affect the money and the rates.


Related Topics:

Mortgage Rates Predictions for the Next 30 Days: July 3-August 3

Will Mortgage Rates Drop or Increase in July 2025: Key Predictions

Mortgage Rate Predictions for the Next 3 Years: 2026, 2027, 2028

Mortgage Rates Predictions for Next 90 Days: July-Sept 2025

How Will These Rates Affect YOU?

These trends have a real impact on homebuyers and the market:

  • Affordability: Even a tiny decrease in rates can help a lot in being able to afford a house. Still, even rates in the mid-6% range are still a challenge.
  • What About The Housing Market?
    • Existing Home Sales: Sales might increase
    • New Home Sales: Sales might increase to address supply
    • Median Home Prices: Prices may still go up a little bit.

Are THERE Any Refinancing Opportunities?

If rates drop closer to 6.3%-6.5% in December 2025, there are chances that this might cause some refinancing. Keep in mind that last year Freddie Mac reported a 56% increase in refinance applications.

Visualizing the Trends

Check out the trend lines I put together charting the predictions:

Mortgage Rates Predictions for the Next 6 Months

A Quick Look Back

It’s good to keep the current predictions in perspective. Here’s the data from Freddie Mac:

  • 30-Year FRM: The highest rate it has been is 7.04 since this past year. the average rate to be at 6.68%.
  • 15-Year FRM: Rates ranged from 5.15% to 6.27%, averaging 5.86%.

Final Thoughts

Looking ahead, mortgage rates from August to December 2025 are most likely going to be in the mid-6% range. There will probably be some slight decreases. A number of economic factors will affect things such as inflation, Federal Reserve policies, and the housing market.

As someone who's watched these financial currents for awhile, my best advice is to stay informed and be ready. Keep tabs on economic stuff and talk to mortgage experts for advice. I will make sure to post periodic updates.

Good luck! Keep watching the rates!

Invest Smarter in a High-Rate Environment

With mortgage rates remaining elevated this year, it's more important than ever to focus on cash-flowing investment properties in strong rental markets.

Norada helps investors like you identify turnkey real estate deals that deliver predictable returns—even when borrowing costs are high.

HOT NEW LISTINGS JUST ADDED!

Connect with a Norada investment counselor today (No Obligation):

(800) 611-3060

Get Started Now 

Also Read:

  • Will Mortgage Rates Go Down in 2025: Morgan Stanley's Forecast
  • Mortgage Rate Predictions 2025 from 4 Leading Housing Experts
  • 30-Year Fixed Mortgage Rate Forecast for the Next 5 Years
  • 15-Year Fixed Mortgage Rate Predictions for Next 5 Years: 2025-2029
  • Will Mortgage Rates Ever Be 3% Again in the Future?
  • Mortgage Rates Predictions for Next 2 Years
  • Mortgage Rate Predictions for Next 5 Years
  • Mortgage Rate Predictions: Why 2% and 3% Rates are Out of Reach
  • How Lower Mortgage Rates Can Save You Thousands?
  • How to Get a Low Mortgage Interest Rate?
  • Will Mortgage Rates Ever Be 4% Again?

Filed Under: Financing, Mortgage Tagged With: Interest Rate, mortgage, Mortgage Rate Trends, mortgage rates, Mortgage Rates Today

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