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

Hello Hampton Roads,

Are Mortgage Rates Finally Going to Drop This Year? 

Mortgage rates may dip 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.

📈 What’s Happening with Mortgage Rates?

After a volatile 2024, hopes for sustained mortgage rate drops never fully materialized. Temporary dips, like the one in September 2024, were offset by the Federal Reserve’s cautious stance, keeping rates elevated well into 2025. 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.

Will Mortgage Rates Go Down in 2025?


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

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

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 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:

⚠️ 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

Q: Should I wait to sell my home until rates drop?
Not necessarily. As inventory increases, competition will too. If you’re ready to sell, now is a strong window—especially with the right strategy.

Q: How do higher rates affect my home’s value?
They affect demand, not value. Hampton Roads home prices are still rising steadily, protecting your equity.

Q: Is it still a good time to buy a home?
Yes—if you’re financially prepared. With more inventory and less competition, buyers have more negotiating power.

Q: Will rates definitely drop in 2025?
There’s hope, but no guarantee. Federal Reserve decisions and economic shifts make mortgage rates unpredictable.

🔑 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.



Thanks for Reading,






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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



May 2025 Hampton Roads Sales Stats

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