Stop Waiting for Lower Mortgage Rates: The ‘New Normal’ of 6% Explained

According to a caller investigation from Realtor.com, the fig of American homeowners with owe rates supra 6% has exceeded those with rates beneath 3%. In the 3rd 4th of 2025, 21.2% of outstanding mortgages had rates of 6% oregon higher, portion 20% had rates beneath 3%. While the pandemic epoch saw historically debased rates, the study recovered that rates person remained supra 6% since September 2022. Even though owe rates person dropped from the highest of 7.04% successful January 2025, it’s evident that they’ll beryllium hovering astir 6% for the clip being.

GOBankingRates consulted with existent property professionals to dive into the “new normal” of 6% owe rates and wherefore radical shouldn’t expect them to spell down anytime soon, particularly based connected existent economical conditions and aboriginal trends.

Here are the main reasons wherefore 6% is present the standard.

“Today’s owe rates are influenced by the economy’s existent authorities alternatively than the caller turmoil successful the markets,” remarked Jonathan Ayala, a existent property adept and the laminitis of a Real Estate Photography company. “The existent complaint situation is nary longer 1 with ultra-low rates, arsenic inflation, the spot of the labour marketplace and semipermanent enslaved yields person altered the expectations successful the economy.”

The harsh world is that the existent rates bespeak the existent economical environment. While assertive economical stimulus was required during the pandemic, the system is successful a antithetic concern now, and it doesn’t look similar little rates volition instrumentality successful 2026.

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Jeff Lichtenstein, a broker and CEO of Echo Fine Properties, Boca Raton, cited ostentation and higher costs arsenic the cardinal drivers of existent involvement rates. He believes that to combat rampant inflation, the Fed can’t driblet involvement rates overmuch further due to the fact that specified a determination could overheat the marketplace and bring prices backmost up again.

Ayala agreed that, fixed existent economical conditions, rates are improbable to diminution further until ostentation is afloat contained and cardinal banks marque a important argumentation shift. If ostentation doesn’t chill down successful 2026, past it doesn’t look that owe rates volition travel down either.

“If you are hoping rates driblet backmost to 3%, it’s important to recognize that those levels were ne'er meant to last,” remarked Jake Vehige, the president of owe lending astatine Neighbors Bank. “Mortgage rates successful the 6% scope are historically normal, and they lucifer today’s economical reality.” While rates whitethorn proceed to driblet somewhat successful 2026, astir experts don’t expect meaningful declines anytime soon.