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Mortgage rates have been rising on expectations that the Federal Reserve will keep interest rates higher this year to fight inflation, per Lawrence Yun, chief economist at the National Association of REALTORS®.

There’s also concern “about whether or not the Trump administration is looking to privatize Fannie Mae and Freddie Mac,” he said. That, he noted, would lead to higher borrowing costs.

Yun predicts mortgage rates will settle in 2025 at what he calls a “new normal”: around 6% to 6.5%.

And that modern housing market remains very challenging for all but the luckiest first-time buyers, per Lawrence Yun. “Young people who are fortunate to get some help from mom and dad or extended family for downpayment can get into the market,” he said.

“Young people who are fortunate to get some help from mom and dad or extended family for downpayment can get into the market,” he said.

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