LUDLOW, Vt. – According to the July Fannie Mae housing forecast, the average 30-year fixed rate mortgage will be at 6.7% by the end of the year, which is a slight decline from 6.8% in the third quarter of 2024. The federal mortgage association predicts a further drop in the average interest rate in 2025, to a rate of 6.4%.
Tyleen Murray, senior broker associate for Kelley Real Estate in Ludlow, relayed, “I have had a couple of buyers looking for awhile now [who] are talking about taking a break until they see rates drop, but for the most part buyers are hopping on any property that is a good fit for them.”
“I would say inflation is coming down and the federal reserve may cut short-term interest rates later this year,” said Victoria Blodgett, senior loan officer at the Ludlow branch of Prime Lending, a company specializing in mortgage, refinance, and renovation loans for over 35 years. “The housing market will recover, but it will not happen overnight. Mortgage rates are projected to come down in the coming months.”
Brian Vaughn with Fairway Mortgage told Murray, “We’re expecting interest rates to begin a long-awaited decline in the final quarter of the year. With unemployment reaching 4.3%, this all but guarantees a cut to the Federal Funds rate in September, which, while not directly reducing mortgage rates, should assist them in moving lower.”
“With inventory so limited, buyers need to act fast with a strong offer to have a chance at securing a property, and if they wait, they may be waiting a while for a suitable home to come on the market,” Murray stated.
“In my 20-plus years as a realtor, we have seen activity fluctuate and it change from a buyers’ market to a sellers’ market. It’s a matter of supply and demand, and with inventory so low, I would say that it is still a sellers’ market. That could change as we see more for sale signs pop up.”
Murray reported that Kelley Real Estate has been selling quite a few area properties to second homeowners who do not require financing, “which keeps our inventory flying off the shelves. [But] it has been nice to have some primary homebuyer sales this year with buyers satisfied with their rates and payments.”
“Refinancing down the road is always an option too,” Murray pointed out, “just so buyers don’t miss out on their ideal home.”