Mortgage rates are forecasted to gradually decline from around 6.7% in August to approximately 6.3%-6.5% by December 2025.

Leading experts like NAR and Fannie Mae predict rates will stay steady in the mid-6% range with no major drops below 6%.

The gradual easing is driven by expected Federal Reserve policy shifts, cooling inflation, and a slowing economy.

These moderate declines could boost home affordability slightly and encourage increased buying and refinancing activity by year-end.