Mortgage Predictions: Slight Dips in Rates Won't Improve Housing Affordability

If the headlines say mortgage rates are the lowest in months, that doesn't always mean the drop was significant. The recent decline in average 30-year fixed mortgage rates, from above 7% to around 6.9%, based on Bankrate data, won't shake up the housing market. Prospective homebuyers are still playing the waiting game. For the week ending Feb. 14, mortgage applications declined to the lowest level since the start of 2025, according to the Mortgage Bankers Association. We're feeling the constraints of low housing affordability, said Jason Walter, a member of CNET Money's Expert Review Board with over a decade of experience as a real estate agent. "US home prices are 3-5% higher than last year, and average 30-year fixed mortgage rates have been stuck near 7% for about two months," Walter said. While experts predict rates to move lower throughout 2025, it's not going to be a dramatic decline. Fannie Mae expects average rates for 30-year fixed home loans to remain above 6.5% for most of ... Read full article.