Freddie Mac Mortgage Rates—July 24, 2025
What happened to mortgage rates this week
The Freddie Mac 30-year mortgage rate dropped 1 basis point, to 6.74%, this week while a lot of political pressure is being put on the FOMC to lower rates. However, the persistent risk of tariff-driven inflation, combined with a rising U.S. fiscal debt—expected to grow further following the passage of the Big Beautiful Bill Act—has helped establish a relatively high floor for interest rates, at least for now.
Looking ahead, Realtor.com® predicts that mortgage rates are likely to stay elevated throughout the remainder of the year but gradually ease to around 6.4% by year-end, as anticipated slowing growth and subdued inflationary pressures help bring rates lower.
What it means for the housing market
High mortgage rates and elevated home prices have kept home sales near yearly lows—a trend that’s perhaps unsurprising given that, in nearly all major U.S. metros, renting a starter home remains the more budget-friendly option. While the long-term financial benefits of homeownership are still well-recognized, many prospective buyers are exercising patience in the face of persistent affordability challenges. Meanwhile, for renters, this environment offers flexibility and an opportunity to build savings.
