If you're planning to buy or sell a home in 2025, you're probably asking:

When will mortgage interest rates go down?

You're not alone. It's one of the most common questions I get at open houses, client meetings, and even local events. That’s why I started my new series, Your 1-Stop for Answers, to bring clear, reliable real estate insights straight to you.

Check out the full IG reel below for more insights >

Let’s take a look at where mortgage rates stand now, what experts are predicting for 2025, and what it means if you're buying or selling in Wayne, NJ or nearby towns like Kinnelon, Riverdale, Montville, Pompton Plains, and Pequannock.

What Happened to Mortgage Rates in 2024?

Last year brought plenty of ups and downs. Here's a quick recap:

Mortgage rates peaked above 8% in 2024
The Federal Reserve only cut rates three times
By the end of 2024, rates settled just over 7%
As of March 2025, the average 30-year fixed rate is about 6.76%

Even a small shift in interest rates can affect how much home you can afford, so it's no surprise buyers and sellers are paying close attention.

Will Mortgage Rates Drop in 2025?

In my recent IG reel, I shared what five major mortgage and housing associations are projecting for this year. Here's a quick look:

Fannie Mae predicts rates could reach 6.3% by late 2025
Freddie Mac expects a gradual drop toward 6.2%
Mortgage Bankers Association (MBA) forecasts rates below 6% by year’s end
National Association of Realtors (NAR) expects rates around 6.3% this summer
National Association of Home Builders (NAHB) sees rates declining as inflation slows

While no one can predict the exact number, most experts agree that rates are likely to trend downward in 2025. The key takeaway is that rates will likely improve, but not overnight.

Should You Wait to Buy a Home in NJ?

A lot of buyers are wondering if they should hold off until rates drop even more. My take?

Don't wait for the perfect rate. Wait for the right home.

Here's why:

As rates fall, competition tends to increase
More competition can drive home prices higher
Buying now at a slightly higher rate may allow you to refinance later
There are still good opportunities in towns like Wayne, Montville, and Kinnelon

If you find the right home in a community you love, now can still be a smart time to buy.

What Sellers in Wayne NJ Should Know About Interest Rates

If you're thinking about selling your home in 2025, lower mortgage rates could work in your favor. Here’s how:

More buyers enter the market as rates drop
Your home may get stronger offers and sell faster
It could be a great time to move up or downsize while locking in a better rate on your next mortgage

As a local expert working across Wayne, Pompton Plains, Riverdale, and Pequannock, I help sellers price and position their homes to stand out and get top dollar.

Selling A Home or Thinking of Listing A Home?

If you’re thinking of selling your home or thinking of listing a home in Wayne NJ, Kinnelon NJ, Riverdale NJ, Montville NJ, Pompton Plains NJ, or Pequannock NJ, contact me to see how using RealVitalize® can enhance your home’s appeal and market value with ease.

Contact Me to Get Started

If you’re ready to sell your home or want to learn more about mortgage points, call or text me at (973) 476-1728, or email hello@1StopSteve.com.

About Stephen Tinney

Stephen Tinney, Owner of 1-Stop-Steve and Coldwell Banker Sales Agent

I help homeowners in Wayne NJ, Kinnelon NJ, Riverdale NJ, Montville NJ, Pompton Plains NJ, and Pequannock NJ navigate the real estate market with ease. As both a licensed Real Estate Agent and Mortgage Broker, I provide expert guidance on selling, buying, and financing your next home.

2025 Mortgage Rate Predictions: What Buyers and Sellers in NJ Need to Know