Look at the bigger picture instead of just focusing on where rates are, says Charlotte-based broker
Housing market watchers have become used to big fluctuations in average mortgage rates in recent years, from the rock-bottom pandemic-era lows to a sudden surge in 2022 and 2023.
But while rates have been slowly inching lower over the past few weeks, they’ve remained resolutely lodged around the mid-to-high sixes for most of 2025 – and for hopeful buyers, becoming “hyperfixated” on rates that aren’t likely to see dramatic movement anytime soon is the wrong strategy, according to a prominent Charlotte broker.
Rebecca Richardson (pictured top), who’s amassed nearly 150,000 social media followers as the self-styled Mortgage Mentor, told Mortgage Professional America that while interest rates were obviously an important part of the conversation about buying a home or refinancing, she was urging clients not to view it as the sole consideration.
“Yes, the rate is a factor – I’m not discounting that,” she said. “But I just want people to understand and look at the bigger picture, look at all the options that are out there. It’s the same thing for people that cling to their 2.87% or 2.38% rate on their house, and then they’ve got [massive] consumer debt.
“I understand the interest, all those kinds of things – but let’s talk cashflow, too. It doesn’t always mean that you need to refinance, doesn’t mean that the cashout refinance is the right thing. But I want people to look at the bigger picture and all the options on the table versus thinking about everything in its own silo.”
Huge rate drops in the year ahead? Don’t bet on it
The huge jump in mortgage rates after the pandemic pushed many would-be buyers to the sidelines as hopeful borrowers contended with a sudden big increase in their potential monthly payments.
But those spikes are a thing of the past, and the market has settled into a degree of normality with Fannie Mae’s latest mortgage rate forecast indicating rates are likely to see at best a mild drop this year.
The government-sponsored enterprise (GSE) said this week that it expects the 30-year average to end this year at 6.5% before dropping to 6.1% by the end of next year.
Fannie Mae now expects average 30-year fixed mortgage rates to end 2025 at 6.5%, up from its original forecast of 6.4%, before falling to 6.1% by the end of next year.https://t.co/ulM9xDa4Qu
— Mortgage Professional America Magazine (@MPAMagazineUS) August 20, 2025
That’s despite the prospect of Federal Reserve interest rate cuts, with the central bank still expected to lower rates at least once between now and the end of 2025 – potentially at its next meeting, scheduled for September 17.
The likelihood of stubborn, consistent mortgage rates means it makes little sense for potential homebuyers to hold off in the hope that rates will post a big decline in the months ahead, according to Richardson.
“I think some of the rate shock has definitely calmed down – some of that, ‘I can’t believe what the home is priced at now, paired up with the rate,’” she said. “I feel like it’s settled in a little bit: everything’s expensive, but they’re not surprised by it.”
Borrowers taking a rational approach to homebuying
While FOMO – fear of missing out – gripped the mortgage market in 2020 and 2021 because the sudden plunge in interest rates, Richardson said borrowers are now taking a more pragmatic view of the homebuying process with time to weigh up a purchase before making a move.
“I think you had the [COVID-era] run on the market: ‘Everybody’s buying a short-term rental or a house, so I need to too,’” she said. “I feel like now there’s a little bit more introspection: ‘Why do I want to own a home? How long do I think I’ll be here? What am I looking to get out of it?’
“So I think that’s coming back. We’re seeing some more balanced markets. It’s not like you have to run out, write a contract, be ready to sign it right there, throw down $20,000. People are going back and looking at homes sometimes two times, three times. This is a major financial decision, and it’s at least giving a little bit of breathing room to do that.”
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