Will Mortgage Rates Drop in 2025? Kent Clothier Says Stop Waiting and Start Buying
Let me ask you something blunt: are you waiting for mortgage rates to drop before you buy real estate? If so, let me save you some pain—you’re playing the wrong game.
Everybody’s out here holding their breath, hoping the Fed is going to come to their rescue. “Maybe we’ll see 5% rates again,” they say. “Maybe if inflation cools off, the dream of 3% mortgages comes back.” Let me hit you with some truth:
That ain’t happening.
As of mid-April 2025, the average 30-year fixed-rate mortgage is around 6.8%, and 15-year loans are hovering at 6.0%. Yes, that’s a far cry from the sub-3% days during the pandemic. But guess what? That was a once-in-a-generation anomaly… not the new normal.
So Will Rates Drop This Year?
The Fed hinted at a couple of rate cuts in 2025. And yes, mortgage rates tend to move in tandem with Fed decisions—but not always directly. What’s more important to watch is the 10-year Treasury yield, which lenders use to price mortgages. That yield’s been sliding a bit—from 4.59% to 4.34% in the past year—but mortgage rates haven’t plummeted because lenders still have to build in their spread (typically 2.5%).
Translation: Even if the Fed nudges rates down later this year, you're still looking at mortgages staying in the 6% to 7% range.
Waiting for Rates to Drop? That Strategy Will Burn You.
I hear this all the time:
“I’ll just wait until rates come down before I buy.”
Let me tell you what that strategy actually means:
You’ll be waiting while home prices keep rising (they have nearly doubled since 2009).
You’ll be waiting while inventory stays tight and competition gets fiercer.
And if rates do drop? Congratulations—every other buyer who was sitting on the sidelines jumps in at once. Demand explodes, prices surge, and you’re stuck overpaying anyway.
If you're serious about building wealth, here's what you should really be asking:
“How do I make today’s numbers work in my favor?”
Because wealthy people don’t wait for perfect market conditions. They find the deal, run the numbers, and make the move.
The Real Strategy in This Market
Here’s how the smart investors are playing the game right now:
✅ Buy the deal, not the rate. Lock in today’s price on the property. You can refinance later—you can’t go back and buy a cheaper house.
✅ Get creative with financing. Seller financing, rate buydowns, assumable mortgages—the opportunities are out there if you stop being lazy.
✅ Look for motivated sellers. Rising rates scare amateur sellers. Use that fear to your advantage.
✅ Think long-term. You’re not just buying a home. You’re acquiring an asset, building equity, and creating generational wealth. That’s the game.
Final Word: You’re Not Just a Buyer—You’re a CEO
If you’re serious about stepping into wealth, stop waiting for permission from the Fed. Take ownership. Lead your financial life like the CEO you were meant to be.
Rates may or may not come down. That’s irrelevant. The real question is: are you prepared to play the hand you're dealt—better than anyone else at the table?
If you're ready to make bold moves with real estate in 2025, now is the time.
Let’s go.
