When will mortgage rates go down? They’ve started decreasing, but it’s unclear if they will continue to do so.

Group 1: Mortgage Rate Trends - Mortgage rates have decreased for four consecutive weeks, with the current average for 30-year fixed-rate mortgages at 6.26% as of September 18, 2025, compared to 6.09% a year ago [1][2] - The Federal Reserve cut the federal funds rate by 25 basis points during its September 2025 meeting, marking the first cut of the year after three cuts in 2024 [3][4] - Mortgage rates typically mirror trends in the federal funds rate, but they do not always continue to decrease after a rate cut [4][5] Group 2: Housing Market Dynamics - The current housing market is characterized by a supply-demand imbalance, with buyers outnumbering available homes, particularly for first-time buyers [8] - The median sale price of single-family homes has risen from $208,400 in Q1 2009 to $410,800 by Q2 2025, indicating a long-term upward trend [9] - Even with potential interest rate drops during a recession, increased demand could keep home prices high due to limited supply [10] Group 3: Buyer Strategies - Buyers are advised not to wait for significantly lower mortgage rates, as home prices and supply-demand factors also play crucial roles in affordability [11] - Exploring various housing options, such as condos or fixer-uppers, can help buyers find affordable homes in today's market [14][17] - Financial tools like rate buydowns can make current mortgage rates more manageable, allowing buyers to reduce their interest rates upfront [19]