Will Mortgage Rates Fall In 2025. Ready to buy a home? Federal reserve widely expected to begin cutting its benchmark interest rate in 2025, mortgage rates could drop as well—at least slightly.

Our current expectation is that the fed will lower rates once in 2025, with a small chance they drop rates two times, says jason obradovich, a chief investment. Mortgage rates will have their biggest decrease in the first quarter of 2025, with the remaining quarters floating around the same average rate.