Will Home Interest Rates Go Down In 2025 Predictions. The federal reserve is expected to cut rates further in 2025, paving the way for slightly lower borrowing costs for consumers. If you’re unsure about where mortgage rates are headed in 2025, you’re in good company.

Credit card interest rates, which can be very sensitive to the federal funds rate, are also predicted to dip slightly, with the average apr dropping to 19.8% by the end of 2025. Where mortgage costs trend from here will depend in.