The Future of Interest Rates

As of late November 2025, the average 30 year fixed mortgage rate in the United States sits near 6.23 percent. The 15 year fixed rate, often chosen by buyers who want to pay off their loan faster, is hovering in the mid 5 percent range.

These numbers feel high compared with the very low rates seen during the early 2020s, but when you zoom out they are not unusual at all. From 1971 through 2025, the average 30 year mortgage rate was about 7.7 percent. In the early 1980s, rates climbed above 15 percent during a period of aggressive anti inflation policy.

A quick look back at rate history

• After the 2008 financial crisis, rates gradually drifted downward because of slow inflation, a cautious Federal Reserve, and global economic conditions.
• During the pandemic, rates hit historic lows. By early 2021, the 30 year fixed rate dropped to about 2.65 percent.
• In 2022, inflation surged and the Federal Reserve began raising its benchmark rate to cool the economy. Mortgage rates climbed quickly as a result.
• From 2023 through 2025, most 30 year mortgages stayed above 6 percent as the economy adjusted and inflation expectations shifted.

What influences interest rates

Mortgage rates are connected to several factors. The Federal Reserve sets short term interest rates, which influence borrowing costs across the economy.

Long term mortgage rates, however, tend to follow the yield on long term Treasury bonds. This means that inflation expectations, economic growth forecasts, federal debt levels, and global investing patterns all play a role in the rate a borrower sees when they apply for a mortgage.

What may happen next

Many analysts expect rates to stay elevated for a while. The Mortgage Bankers Association has projected that 30 year mortgage rates will likely remain at or above 6 percent through 2026.

Predictions for the long term are not expecting a return to the 3 percent and 4 percent rates we saw in 2020 and 2021. Some softening could happen if inflation cools or the Federal Reserve lowers short term rates, but a dramatic drop looks unlikely based on current trends.

What this means for buyers and sellers

Rates above 6 percent reduce how much home a buyer can comfortably afford. Even so, locking in a rate now can still be a smart decision if buyers expect rates to stay relatively stable.

For sellers, higher rates typically mean fewer active buyers, which can slow price growth or reduce demand. On the other hand, less competition can help serious buyers who were previously being outbid.

If rates begin to settle or drift lower, buyers sitting on the sidelines may return to the market. Sellers may need to adjust pricing expectations and stay flexible. For guidance on positioning a property in the Dallas Fort Worth market, explore our property management services.

Why rates may stay higher than what we saw in 2020 and 2021

• Ongoing inflation pressure may keep long term yields higher.
• Larger government deficits may push Treasury yields up, which influences mortgage rates.
• A cautious Federal Reserve may wait longer to cut rates, which can hold borrowing costs up across the economy.

Final thoughts

Today's rates may not feel friendly when compared to the extreme lows of 2020 and 2021, but they fall well within normal historical ranges. Buyers and sellers should expect a period of moderate to higher rates, with occasional movement as the economy shifts.

For Cox Premier Properties, the goal is to help buyers and sellers navigate this new environment with realistic expectations and smart decision making. This market rewards patience, preparation, and understanding the bigger economic picture. Ready to discuss your next move in Dallas Fort Worth? Contact our team to get started.