{"id":4823,"date":"2025-02-13T13:52:23","date_gmt":"2025-02-13T18:52:23","guid":{"rendered":"https:\/\/tomo.com\/blog\/?p=4823"},"modified":"2025-02-13T15:58:52","modified_gmt":"2025-02-13T20:58:52","slug":"north-carolina-mortgage-rate-forecast-2025","status":"publish","type":"post","link":"https:\/\/tomo.com\/blog\/north-carolina-mortgage-rate-forecast-2025\/","title":{"rendered":"North Carolina mortgage rate forecast: 2025"},"content":{"rendered":"\n<p><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"726\" src=\"https:\/\/tomo.com\/blog\/wp-content\/uploads\/2025\/02\/Rate-Update-Graph-1024x726.png\" alt=\"\" class=\"wp-image-4825\" srcset=\"https:\/\/tomo.com\/blog\/wp-content\/uploads\/2025\/02\/Rate-Update-Graph-1024x726.png 1024w, https:\/\/tomo.com\/blog\/wp-content\/uploads\/2025\/02\/Rate-Update-Graph-300x213.png 300w, https:\/\/tomo.com\/blog\/wp-content\/uploads\/2025\/02\/Rate-Update-Graph-768x545.png 768w, https:\/\/tomo.com\/blog\/wp-content\/uploads\/2025\/02\/Rate-Update-Graph-1536x1090.png 1536w, https:\/\/tomo.com\/blog\/wp-content\/uploads\/2025\/02\/Rate-Update-Graph.png 1748w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>The chart above shows real interest rates locked for 30-year conventional loans in North Carolina for people with great credit (FICO score of 740+) by over 1,000 different lenders. The dotted line is our projected forecast for 2025, with rates looking like they&#8217;ll hold pretty steady nationally around 6.875% at the wrap of each quarter.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What is a good interest rate for home buyers in Durham right now<\/h3>\n\n\n\n<p><\/p>\n\n\n\n<p>With home prices high, even a slight dip in interest rates can be a meaningful reduction in monthly payment. <\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>If you&#8217;re looking for a <a href=\"https:\/\/tomo.com\/mortgage\/affordability?utm_source=tomo_blog\" title=\"home in Durham\">home in Durham<\/a> and have good credit and sufficient income (a FICO credit score between 720 and 740), a typical buyer should target less than 6.875% to ensure they are getting a competitive rate on their mortgage. <\/p>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/tomo.com\/mortgage\/rates?utm_source=tomo_blog\">Check today&#8217;s interest rates<\/a><\/div>\n<\/div>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Will interest rates go down in 2025?<\/h3>\n\n\n\n<p><\/p>\n\n\n\n<p>For 2025, the market consensus is forecasting a slight drop in mortgage rates, from nearly 7% today to 6.5% by the end of the year. The Federal Reserve is signaling two rate cuts, but it\u2019s important to remember that the Fed does not directly control mortgage rates. <\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>At <a href=\"https:\/\/tomo.com\/mortgage\/\" title=\"\">Tomo Mortgage<\/a>, we believe the market is overly optimistic in its mortgage rate forecast and expect rates to end the year close to where they are now: 6.875%.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><strong>Key factors driving rates in 2025:<\/strong><\/p>\n\n\n\n<p><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>The labor market<\/strong>: the labor market will continue to drive inflation outcomes and influence Fed policy. So far, it shows no signs of slowing down.<\/li>\n\n\n\n<li><strong>Fiscal and regulatory policy<\/strong>: fiscal and regulatory actions will play a larger role in shaping mortgage rates than the Fed\u2019s monetary policy. Key areas we are monitoring include:\n<ul class=\"wp-block-list\">\n<li><strong>The prospect of mass deportations:<\/strong> this could tighten a labor force that has just returned to balance.<\/li>\n\n\n\n<li><strong>The effect of tariffs:<\/strong> tariffs are inherently inflationary.<\/li>\n\n\n\n<li><strong>The potential exit of Fannie Mae and Freddie Mac from conservatorship:<\/strong> this remains the largest wildcard outside the macroeconomy.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n\n\n\n<p><\/p>\n\n\n\n<p>The odds of seeing mortgage rates dip into the 6s are not in favor. The latest Freddie Mac mortgage survey showed 30-year fixed mortgage rates at 6.91%. Historically, the odds of a drop of 0.91% or more from the first week of the year are slim\u2014only about 25% of the time (13 out of 53 years) has this happened. Moreover, the risks for rates remain to the upside.<\/p>\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<figure class=\"wp-block-image size-full is-resized tomo-table__img\"><img decoding=\"async\" width=\"94\" height=\"22\" src=\"https:\/\/tomo.com\/blog\/wp-content\/uploads\/2024\/01\/tomo-logo-horizontal.png\" alt=\"\" class=\"wp-image-1405\" style=\"width:75px\"\/><\/figure>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Next: <\/strong><a href=\"https:\/\/hellotomo.com\/rates?utm_source=tomo_blog\" title=\"See Personalized Rates\">Calculate Personalized Rates<\/a><\/p>\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<div style=\"padding-top:var(--wp--preset--spacing--30);padding-bottom:var(--wp--preset--spacing--30);padding-left:var(--wp--preset--spacing--30);padding-right:var(--wp--preset--spacing--30);margin-top:var(--wp--preset--spacing--30);margin-bottom:var(--wp--preset--spacing--30);margin-left:0;margin-right:0;\" class=\"has-link-color wp-elements-37d193832ea2e3792111d5c18c9d858f wp-block-post-author has-text-color has-contrast-color has-background has-tertiary-background-color has-large-font-size\"><div class=\"wp-block-post-author__avatar\"><img decoding=\"async\" width=\"96\" height=\"96\" src=\"https:\/\/tomo.com\/blog\/wp-content\/uploads\/2025\/01\/Emanuel-Santa-Donato-Tomo-3-1-96x96.webp\" class=\"avatar avatar-96 photo\" alt=\"\" srcset=\"https:\/\/tomo.com\/blog\/wp-content\/uploads\/2025\/01\/Emanuel-Santa-Donato-Tomo-3-1-96x96.webp 96w, https:\/\/tomo.com\/blog\/wp-content\/uploads\/2025\/01\/Emanuel-Santa-Donato-Tomo-3-1-150x150.webp 150w, https:\/\/tomo.com\/blog\/wp-content\/uploads\/2025\/01\/Emanuel-Santa-Donato-Tomo-3-1-24x24.webp 24w, https:\/\/tomo.com\/blog\/wp-content\/uploads\/2025\/01\/Emanuel-Santa-Donato-Tomo-3-1-48x48.webp 48w, https:\/\/tomo.com\/blog\/wp-content\/uploads\/2025\/01\/Emanuel-Santa-Donato-Tomo-3-1-300x300.webp 300w\" sizes=\"(max-width: 96px) 100vw, 96px\" \/><\/div><div class=\"wp-block-post-author__content\"><p class=\"wp-block-post-author__name\"><a href=\"https:\/\/tomo.com\/blog\/author\/emanuel-santa-donato\/\" target=\"_self\">Emanuel Santa-Donato<\/a><\/p><p class=\"wp-block-post-author__bio\">As Senior Vice President and Chief Market Analyst, Emanuel leads Tomo&#8217;s Financial Products and Growth functions. He has an extensive background in macroeconomics and systemization (Bridgewater Associates) and a passion for creating solutions to the housing affordability problem. He has been working alongside the largest financial institutions in the country, including Fannie Mae and Freddie Mac, for the past 8 years, to modernize the mortgage industry.<\/p><\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>See how Tomo Mortgage&#8217;s head of Capital Markets breaks down the latest mortgage rate forecasts, predictions, and outlooks for 2024.<\/p>\n","protected":false},"author":22,"featured_media":4829,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[282],"tags":[],"class_list":["post-4823","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-research-analysis"],"aioseo_notices":[],"jetpack_featured_media_url":"https:\/\/tomo.com\/blog\/wp-content\/uploads\/2025\/02\/Template-for-Blog-Content-8.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/posts\/4823","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/comments?post=4823"}],"version-history":[{"count":4,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/posts\/4823\/revisions"}],"predecessor-version":[{"id":4831,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/posts\/4823\/revisions\/4831"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/media\/4829"}],"wp:attachment":[{"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/media?parent=4823"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/categories?post=4823"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/tags?post=4823"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}