For now, expectations for interest rate cuts in 2025 are relatively limited. This may limit the potential for lower mortgage rates.

"While I'd love to say rates will drop below 6% in 2025, I think it's a moderate probability and not a certainty," says Steven Parangi, a licensed mortgage loan originator and owner of Alpine Mortgage Services. His view aligns with the Mortgage Bankers Association's prediction that rates will stay between 6% and 7% throughout the year.

These are today's mortgage and refinance rates. Mortgage rates have gone up thanks to strong economic data. Where they go next depends on inflation.

Today, the mortgage interest rate on a 30-year fixed mortgage is 7.43%, according to Curinos. On a 15-year fixed mortgage, the average rate is 6.61%, and the average rate on a 30-year jumbo mortgage is 7.

When the Fed cuts rates, it often leads to lower mortgage rates because borrowing costs drop overall. Unfortunately, though, mortgage rates have instead climbed higher since the F