The “New Normal” for Mortgage Rates and What It Means for You | Market Recap - August 29, 2025

Описание: Market Recap - August 29, 2025

Mortgage rates are holding steady at 6.5%, a positive sign after weeks of trending in the right direction. Inflation numbers came in as expected, and the jobs report is coming soon. While steady is encouraging, it does not mean the market is back to normal.

The housing market has not been truly normal for nearly 20 years. Before the 2008 crash, rates were around 6% to 6.5%, lending standards were loose, and builders were producing homes at a rapid pace. The crash left the industry with oversupply and too few qualified buyers. Lending standards tightened, builders pulled back, and rates stayed historically low for over a decade.

During Covid, rates dropped under 3%, fueling a surge of purchases and refinances. Inflation surged, the Fed raised rates 11 times, and by October 2023 mortgage rates peaked at 7.82%. Since then, rates have been trending lower.

Experts now believe the new long-term “normal” will be 5% to 5.5% for conventional loans. That may surprise buyers who are hoping for the 2% to 3% rates of the pandemic, but this new range is far more sustainable for the housing market.

For homebuyers today, the key opportunity is timing. Many sellers are still offering concessions to help cover closing costs or buy down your rate. These offers make homes more affordable, but they are unlikely to last once demand picks up again. Waiting may mean losing thousands of dollars in seller help and facing higher home prices.

The path forward is toward stability. Gradual declines in rates, steady increases in home values, and more housing supply will create a healthier market by 2026. For buyers, that means acting strategically now rather than waiting for a “normal” that may never return.

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Bill Gaylord, NMLS 680603 | Gaylord-Hansen Team at CrossCountry Mortgage | 858-776-6830 | https://www.billgaylord.com

Rate Source: Mortgage News Daily (https://www.mortgagenewsdaily.com)

The information contained is the viewpoint of the presenter(s). Individuals should consult their own financial representative.

Equal Housing Opportunity. All loans subject to underwriting approval. Certain restrictions apply. Call for details. All borrowers must meet minimum credit score, loan-to-value, debt-to-income, and other requirements to qualify for any mortgage program. CrossCountry Mortgage, LLC. NMLS3029 NMLS1437924 NMLS1628467 NMLS2079383 (www.nmlsconsumeraccess.org).