Anticipated Interest Rate Cuts May Lower Mortgage Rates

Anticipated Interest Rate Cuts May Lower Mortgage Rates: A Prime Opportunity for Buyers and Sellers

Goldman Sachs economists now predict that the Federal Reserve will implement three quarter-point interest rate cuts in 2025, scheduled for July, September, and November. This adjustment from their earlier forecast of two cuts reflects evolving economic conditions. ​

In response to these anticipated cuts, mortgage rates have already experienced a slight decline. Goldman Sachs Research projects that 30-year fixed mortgage rates will decrease to approximately 6.3% by the end of 2025, enhancing affordability for prospective homebuyers. 

This potential reduction in mortgage rates is expected to stimulate increased activity in the housing market. Goldman Sachs forecasts a 4.4% rise in U.S. home prices in 2025, up from a previous estimate of 3.2%, indicating a robust and competitive market. ​

What does this mean for buyers and sellers?

For buyers, securing pre-approval now positions you advantageously to act swiftly as opportunities arise. Sellers can anticipate heightened interest and potentially multiple offers, particularly for move-in-ready homes in good condition.

Our team is dedicated to guiding clients through these market dynamics. Whether you're looking to buy or sell, we provide expert advice and support to help you make informed decisions in this evolving landscape.

Please note that economic forecasts are subject to change based on various factors. Consult with a financial advisor or mortgage professional for personalized advice tailored to your situation.