Will Interest Rates Go Down in April? | Predictions 2025

Mortgage rate forecast for next week (Apr. 21-25)

After taking tiny steps down for three weeks in a row, mortgage rates shot back up.

The average 30-year fixed rate mortgage (FRM) grew to 6.83% on Apr. 17 from 6.62% on Apr. 10, according to Freddie Mac. Despite the jump, it marks 13 straight weeks below 7% for the average 30-year FRM.

“Mortgage rates are still moving in reaction to the news of the day, though with smaller swings than in the aftermath of the liberation day on-again/off-again tariff announcements. While daily mortgage rates seem to have eased in the last few days, rates are off the recent dip and back up to the levels from mid-February,” said Kara Ng, senior economist at Zillow Home Loans.

In this article (Skip to...)

• Will rates go down in April?
• 90-day forecast
• Expert rate predictions
• Mortgage rate trends
• Rates by loan type
• Mortgage strategies for April
• Mortgage rates FAQ

Will mortgage rates go down in April?

“The market awaits some clarity on economic policies — particularly tariff-induced trade wars — before rates can move strongly in either direction.”

-Rick Sharga, CEO at CJ Patrick Company

Mortgage rates fluctuated significantly in 2023, with the average 30-year fixed rate going as low as 6.09% and as high as 7.79%, according to Freddie Mac. That range narrowed in 2024, with a spread of 6.08% to 7.22%.

With the economy probably heading into a recession, we may have already seen the peak of this rate cycle. But if inflation rises, mortgage rates could uptrend. Of course, interest rates are driven by many factors and notoriously volatile, so they could change direction any given week.

Experts from Realtor.com, First American, and CJ Patrick weigh in on whether 30-year mortgage rates will climb, fall, or level off in April.

Expert mortgage rate predictions for April

Hannah Jones, senior economic research analyst at Realtor.com

Prediction: Rates will moderate

“Rates will likely continue to hover in the mid-to-high 6% range in April. Widespread economic uncertainty has made consumers less optimistic, but easing mortgage rates have the potential to spark spring buyer activity. The FOMC kept interest rates unchanged in their March meeting but left the door open for rate cuts later in the year. However, for April, it is likely that mortgage rates will stay relatively steady unless any significant policy changes are enacted that could impact inflation expectations.”

Rick Sharga, CEO at CJ Patrick Company

Prediction: Rates will moderate

“Mortgage rates in March settled into a very tight band between 6.7-7.0%, and seem likely to stay there through April as the market awaits some clarity on economic policies — particularly tariff-induced trade wars — before rates can move strongly in either direction. There’s a chance that the combination of the Federal Reserve slowing the run-off of its securities and a flight to safety in U.S. Treasuries from investors unwilling to ride out the volatility in the stock market could lower bond yields; and that could cause mortgage rates to dip slightly lower.”

Sam Williamson, senior economist at First American

Prediction: Rates will moderate

“The mortgage rate environment is mixed going into April, mainly driven by the near-term outlook for 10-year Treasury yields, which mortgage rates tend to follow. Federal Reserve Chairman Jerome Powell stated that the central bank has no immediate plans to reduce the fed funds rate. Inflation is gradually easing but remains above its 2% target, and the labor market remains on solid footing. Upside risks to inflation have risen amid trade policy uncertainty, which could put upward pressure on Treasury yields and mortgage rates. However, concerns about declining consumer sentiment and a weakening labor market could put downward pressure on 10-year yields. Without a decisive shift in these factors, our base case is that mortgage rates will remain steady for the month.”

Mortgage interest rates forecast next 90 days

As inflation ran rampant in 2022, the Federal Reserve took action to bring it down and that led to the average 30-year fixed-rate mortgage spiking in 2023.

With inflation gradually cooling, the Fed made three rate cuts in 2024 (September, November, and December). Heading into 2025, many experts believed mortgage interest rates would gradually descend.

Of course, rates could rise on any given week or if another global event causes widespread uncertainty in the economy.

Mortgage rate predictions for 2025

The 30-year fixed-rate mortgage averaged 6.83% as of Apr. 17, according to Freddie Mac. All five major housing authorities we looked at predict 2025’s second quarter average to below that.

National Association of Realtors sits at the low end of the group, projecting the average 30-year fixed interest rate to settle at 6.5% for Q2. Meanwhile, Fannie Mae and Mortgage Bankers Association had the highest forecast of 6.8%.

Current mortgage interest rate trends

Mortgage rates jumped from the previous week.

The average 30-year fixed rate increased to 6.83% on Apr. 17 from 6.62% on Apr. 10. Meanwhile, the average 15-year fixed mortgage rate went to 6.03% from 5.82%.

Source: Freddie Mac

After hitting record-low territory in 2020 and 2021, mortgage rates climbed to a 23-year high in 2023 before descending somewhat in 2024. Many experts and industry authorities believe they will follow a downward trajectory into 2025. Whatever happens, interest rates are still below historical averages.

Dating back to April 1971, the fixed 30-year interest rate averaged around 7.8%, according to Freddie Mac. So if you haven’t locked a rate yet, don’t lose too much sleep over it. You can still get a good deal, historically speaking — especially if you’re a borrower with strong credit.

Just make sure you shop around to find the best lender and lowest rate for your unique situation.

Mortgage rate trends by loan type

Many mortgage shoppers don’t realize there are different types of rates in today’s mortgage market. But this knowledge can help home buyers and refinancing households find the best value for their situation.

Which mortgage loan is best?

The best mortgage for you depends on your financial situation and your goals.

For instance, if you want to buy a high-priced home and you have great credit, a jumbo loan is your best bet. Jumbo mortgages allow loan amounts above conforming loan limits, which max out at $ in most parts of the U.S.

On the other hand, if you’re a veteran or service member, a VA loan is almost always the right choice. VA loans are backed by the U.S. Department of Veterans Affairs. They provide ultra-low rates and never charge private mortgage insurance (PMI). But you need an eligible service history to qualify.

Conforming loans and FHA loans (those backed by the Federal Housing Administration) are great low-down-payment options.

Conforming loans allow as little as 3% down with FICO scores starting at 620. FHA loans are even more lenient about credit; home buyers can often qualify with a score of 580 or higher, and a less-than-perfect credit history might not disqualify you.

Finally, consider a USDA loan if you want to buy or refinance real estate in a rural area. USDA loans have below-market rates — similar to VA — and reduced mortgage insurance costs. The catch? You need to live in a ‘rural’ area and have moderate or low income to be USDA-eligible.

Mortgage rate strategies for April 2025

Mortgage rates displayed their famous volatility throughout 2024. Fed cuts in September, November, and December, with the potential for more in 2025 provide optimism for descending rates.

Previously, the central bank held off on a rate hike at eight consecutive meetings, preferring to see if the economy would keep cooling organically. They finally deemed inflation’s downtrend as organic and made its first cuts since 2020.

However, ongoing inflation battles forced the Fed to hold in January and March. As always, the committee said it would adjust its policies as necessary — which could mean additional cuts or possibly none at all.

Here are just a few strategies to keep in mind if you’re mortgage shopping in the coming months.

Be ready to move quickly

Indecision can lead to failure or missed opportunities. That holds true in home buying as well.

Although the housing market is becoming more balanced than the recent past, it still favors sellers. Prospective borrowers should take the lessons learned from the last few years and apply them now even though conditions are less extreme.

“Taking too long to decide to make an offer can lead to paying more for the home at best and at worst to losing out on it entirely. Buyers should get pre-approved (not pre-qualified) for their mortgage, so that the seller has some certainty about the deal closing. And be ready to close quickly — a long escrow period will put you at a disadvantage.

And it’s definitely not a bad idea to work with a real estate agent who has access to “coming soon” properties, which can give a buyer a little bit of a head start competing for the limited number of homes available,” said Rick Sharga.

If mortgage rates continue on a downward trajectory, more and more buyers will likely enter the market after being priced out on the sidelines. Being decisive (and prepared) should only play to your advantage.

Shopping around isn’t only for the holidays

Since interest rates can vary drastically from day to day and from lender to lender, failing to shop around likely leads to money lost.

Lenders charge different rates for different levels of credit scores. And while there are ways to negotiate a lower mortgage rate, the easiest is to get multiple quotes from multiple lenders and leverage them against each other.

“For potential home buyers, it’s important to get quotes from multiple lenders for a mortgage, as rates can vary dramatically, especially during such a volatile period,” said Odeta Kushi.

As the mortgage market slows due to lessened demand, lenders will be more eager for business. While missing out on the rock-bottom rates of 2020 and 2021 may sting, there’s always a way to use the market to your advantage.

How to shop for interest rates

Rate shopping doesn’t just mean looking at the lowest rates advertised online because those aren’t available to everyone. Typically, those are offered to borrowers with great credit who can put a down payment of 20% or more.

The rate lenders actually offer depends on:

• Your credit score and credit history
• Your personal finances
• Your down payment (if buying a home)
• Your home equity (if refinancing)
• Your loan-to-value ratio (LTV)
• Your debt-to-income ratio (DTI)

To figure out what rate a lender can offer you based on those factors, you have to fill out a loan application. Lenders will check your credit and verify your income and debts, then give you a ‘real’ rate quote based on your financial situation.

You should get three to five of these quotes at a minimum, then compare them to find the best offer. Look for the lowest rate, but also pay attention to your annual percentage rate (APR), estimated closing costs, and ‘discount points’ — extra fees charged upfront to lower your rate.

This might sound like a lot of work. But you can shop for mortgage rates in under a day if you put your mind to it. And shaving just a few basis points off your rate can save you thousands.

Mortgage interest rate FAQ

What are today’s mortgage rates?

Mortgage rates are rising, but borrowers can almost always find a better deal by shopping around. Connect with a mortgage lender to find out exactly what rate you qualify for.

¹Today's mortgage rates are based on a daily survey of select lending partners of The Mortgage Reports. Interest rates shown here assume a credit score of 740. See our full loan assumptions here.

Selected sources:

• https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm
• http://www.freddiemac.com/research/datasets/refinance-stats/index.page