Mortgage rates refer to the interest rates charged on a mortgage loan, which is a loan used to purchase real estate. These rates are expressed as a percentage of the loan amount and are typically influenced by various factors, including economic conditions, inflation, the central bank’s interest rates, the borrower’s credit profile, and the type of mortgage product chosen.
Mortgage rates can be fixed, where the interest rate remains constant throughout the life of the loan, or variable (or adjustable), where the rate can change at specified times based on market conditions. The rate directly affects the monthly payments a borrower must make and the total cost of borrowing over the duration of the loan. Lower mortgage rates usually make purchasing a home more affordable, while higher rates can increase the overall cost of homeownership and deter potential buyers from entering the housing market. Mortgage rates are a critical consideration for those looking to finance a home purchase, and they can vary significantly over time and by lender.
Mortgage Rate Trends for 2025 According to economist Michel Mouillart, there is promising news for homebuyers awaiting a decline in mortgage rates. He anticipates that the trend of decreasing mortgage…