📉 Will Mortgage Rates Go Down in 2025? 🏡 Here's What Buyers and Sellers in Hampton Roads Need to Know 🔍

Hello Hampton Roads,

Will Mortgage Rates Finally Go Down in 2025? 

Mortgage rates may go down slightly slightly in the second half of 2025, but most economists expect them to hover between 6.5% and 7% for the remainder of the year. Fannie Mae predicts they’ll end around 6.1%. Whether you're planning to buy or sell in South Hampton Roads, understanding where mortgage rates are headed—and how they impact the market—is critical to making smart real estate decisions.

As of now, buyers and sellers in Virginia Beach, Norfolk, Chesapeake, Portsmouth, and Suffolk must plan for a market where 6%+ rates are the new normal—at least for now.

📊 Key Takeaways for Hampton Roads Buyers & Sellers (2025)

Strategic insights from current mortgage rate trends and local market shifts

• Rates Will Stay Elevated: Most forecasts expect rates between 6.5%–7% through 2025; Fannie Mae projects 6.1% by year-end.
• Seller Strategy Is Crucial: Inventory is up 27% YOY, buyers qualify for less, and assumable FHA/VA loans offer a competitive edge.
• Buyers Have Leverage: More inventory and fewer bidding wars mean stronger negotiating power and builder incentives like rate buy-downs.
• Timing Matters: Waiting for lower rates could mean higher prices and more competition as listings surge.
• Local Expertise Wins: Strategic guidance from a hyperlocal expert like Liz Schuyler is key to navigating Virginia Beach and surrounding cities.

📊 Current Mortgage Rates from Mortgage News Daily (As of June 6, 2025)

An excellent resource for seeing the current national average mortgage rates is Mortgage News Daily.

Loan Type	Current Rate	52-Week Low	52-Week High	Daily Change
30-Year Fixed	6.90%	6.11%	7.34%	No Change
15-Year Fixed	6.22%	5.54%	6.80%	+0.03%
30-Year FHA	6.29%	5.65%	6.85%	+0.01%
30-Year VA	6.30%	5.66%	6.87%	No Change
30-Year Jumbo	7.02%	6.37%	7.54%	+0.02%
7/6 ARM	6.45%	5.95%	7.39%	No Change

🏠 How Higher Rates Affect Buyers & Sellers in Hampton Roads

📉Sellers

• High rates shrink buyer budgets—someone approved for $400K at 4% may now only afford $320K.
• Inventory is rising: 4,541 homes were for sale in March 2025, up 27% from the year prior.
• Success hinges on strategic pricing and standout presentation in a more competitive market.

💸 Buyers

• Less competition means fewer bidding wars and more negotiating power.
• Expanded inventory gives buyers more options and better value.
• Motivated sellers—especially builders—may offer incentives like rate buy-downs and closing cost assistance.

🏠 How Higher Rates Affect Sellers in Hampton Roads

If you're selling, high mortgage rates don’t mean you can’t succeed—it just means you need the right strategy.

• Buyer Affordability: At 7%, a buyer approved for a $400,000 home at 4% may now only afford $320,000. That means today’s buyers are choosier and more budget-conscious.

• Rising Inventory: In March 2025, there were 4,541 homes for sale—up 27% from March 2024. With more competition, sellers must price strategically and ensure their homes stand out.

💡 Pro Tip: Do you have an assumable mortgage with a low interest rate?  FHA and VA loans are assumable and depending on your rate, this could be an attractive feature for a qualified home buyer. Learn more here: https://assumableloan.hamptonroadshomes.us/

💸What Today’s Rates Mean for Buyers

For buyers, current rates bring both challenges and opportunities:

• Less Competition: Compared to the pandemic peak, there are fewer bidding wars, and buyers have more time and leverage.

• More Inventory: With more choices, buyers can find better value and negotiate more favorable terms.

• Know Your Motivated Sellers: Some of the best deals on the market come from new contruction. Builders are extremely motivated sellers who have to move inventory quickly and are willing to offer incentives to do it such as lower down payments, rate buy downs, and closing costs assistance.

💡 Pro Tip: Buyers have options to lower their interest rates such assumable loans, buying down the rate with points, or taking advantage of rate reduction programs like SPARC for first time buyers for a 1% rate reduction or a 2% rate reduction for first generation home buyers. To talk about your options, schedule a call here: https://calendly.com/liz-schuyler 

📉 Will Rates Drop Anytime Soon?

Economists predict modest declines but no dramatic drops:

• Fannie Mae Forecast: Rates near 6.1% by late 2025 and 5.8% in 2026 per their May 2025 Economic Report

• NAR’s Chief Economist: Rates predicted to be 6.4% by the end of 2025 and 6.1% by 2026.

• HousingWire Outlook: Rates ranging from 5.75% to 7.25% 

⚠️ Waiting to Sell? Think Twice.
As rates decline, inventory typically increases—creating more competition for sellers. Many hom owners are fortunate enough to have low interest rate loans but are holding off selling due to the rate-lock effect. They can sell but don't want to be stuck in a high rate mortgage so a rates go down, more sellers are willing to list their homes for sale. 

🕒 Timing the Market: What Sellers and Buyers Should Know

If you’re waiting for the “perfect” moment, you might miss real opportunities.

• Sellers: Today’s motivated buyers are serious and qualified. With more homes hitting the market, now may be the ideal time to sell before inventory rises further.

• Buyers: If you’re financially ready, don’t let the current interest rate stop you. There are ways to obtain a better rate and waiting could mean paying more later as home prices continue to climb modestly (3–4% expected increase in 2025).

🔍 The Value of Working with a Local Expert: Liz Schuyler

No matter which side of the transaction you’re on, local knowledge is power. With deep experience in South Hampton Roads real estate, I've helped hundreds of buyers and sellers navigate shifting market conditions with confidence.

Let's talk about your real estate goals: https://calendly.com/liz-schuyler

---

❓ Frequently Asked Questions

1. Should I wait to buy until rates drop?

Not necessarily. While rates might dip slightly, waiting could mean missing out on better inventory and builder incentives. If you're financially ready, now’s a great time to negotiate and lock in value.

2. I’ve got a low-rate mortgage—does that help me sell?

Yes! If your loan is FHA or VA, it might be assumable. That means a qualified buyer could take over your low rate, making your home extra appealing in a high-rate market.

3. Are sellers still getting good offers with rates this high?

They are—but strategy matters. With inventory up 27% from last year, buyers are choosier. Pricing smart and highlighting unique features (like assumable loans or upgrades) can make all the difference.

4. Will rates actually go down this year?

Economists predict modest declines—Fannie Mae sees 6.1% by year-end—but no dramatic drops. Rates are expected to stay in the 6.5–7% range for most of 2025.

5. Is it true builders are offering deals right now?

Absolutely. New construction sellers are highly motivated and often offer perks like rate buy-downs, closing cost help, and lower down payments. It’s a great time to explore those options.

---

🔑 Final Takeaway

Trying to time the market perfectly rarely works. Whether buying or selling, your best strategy is preparation, professional guidance, and local expertise.

If you're considering a move in Virginia Beach, Norfolk, Chesapeake, Portsmouth, or Suffolk, reach out to me for an honest, no pressure conversation on your best options---no matter where mortgage rates head next.

📉 Navigating Mortgage Rates in 2025?

Whether you're buying or selling, today's rates demand smart strategy. I’ll help you explore rate reduction options, decode buyer affordability, and position your home or offer for success in Hampton Roads. 🧠

📅 Book Your Free Home Buying or Selling Strategy Call

---

Thanks for Reading,

_________________________

Liz Schuyler, Virginia Beach Real Estate Agent
RE/MAX Allegiance

Liz Schuyler is a top Virginia Beach REALTOR® with RE/MAX Allegiance, licensed since 2001 and trusted across Hampton Roads. With 350+ homes sold, she helps clients Sell, Move, and Invest with confidence and strategy.

Check out the latest sales stats in Hampton Roads. Want to discuss your home buying or selling plans and the best strategy to help you get there?  Schedule a free call: https://calendly.com/liz-schuyler