Could Redfin be correct predicting 7% interest rates in 2025?

[Gregory Schwartz]

I just read this article from Redfin (Housing Market Predictions for 2025) that predicts mortgage rates will stay at 6.85% in 2025.

That seems like one of the few predictions saying rates will stay that high. Are they way off, or could they actually be right?

In my local market (College Station, TX), high rates in 2024 already caused a big jump in inventory, which created some good buying opportunities. If rates stay high, do you think inventory will keep climbing, opening up even more deals for buyers who are ready to pounce?

[Jay Hurst]

Quote from @Gregory Schwartz:

I just read this article from Redfin (Housing Market Predictions for 2025) that predicts mortgage rates will stay at 6.85% in 2025.

That seems like one of the few predictions saying rates will stay that high. Are they way off, or could they actually be right?

In my local market (College Station, TX), high rates in 2024 already caused a big jump in inventory, which created some good buying opportunities. If rates stay high, do you think inventory will keep climbing, opening up even more deals for buyers who are ready to pounce?

 Most borrowers I speak to are just assuming that rates will drop off the table in a few months. I then ask them why they think that, and there is no real answer. For rates to drop considerably something has to change in the economy. Rates are NOT high right now historically speaking. https://fred.stlouisfed.org/series/MORTGAGE30US   Sure, we have gotten used to historically anomalous low rates, but that does not mean we will get back there without the economy slowing down. Folks forget rates did not drop below 6% until 2009, which was due the nearly collapse of the world economy and of course the rock bottom 4 and under was a result of the world shutting down due to covid.