The rate on the 30-year fixed-rate mortgage will average around 6.0% next year in the U.S., helping boost new housing construction and stimulating demand for previously owned homes, Reuters reports.
That’s according to predictions released Thursday by the National Association of Realtors.
NAR also projects 4.5 million existing home sales in 2025 and forecast house prices increasing by about 2%. It estimates a $410,700 median existing home price.
The housing market has been impacted by the Federal Reserve’s tightened monetary policy from March 2022 to July 2023, which caused sales of previously owned homes to decrease as sellers became discouraged by higher mortgage rates.
In response, builders have begun constructing smaller homes, drawing buyers to new construction and driving new construction sales.
