Will Mortgage Rates Drop in 2025? Idaho Mortgage Rate Forecast for Homebuyers

Will Mortgage Rates Drop in 2025? Idaho Homebuyer Forecast

The Big Question on Everyone's Mind

If you're planning to buy a home in Idaho, you've probably been searching for the Idaho mortgage rate forecast Fall 2025.

It's the number one question on buyers' minds right now: will mortgage rates finally drop this season, or should you wait until next year? With rates bouncing between the mid-6s and low-7s so far in 2025, Idaho buyers are eager for some clarity.

Let's take a look at what the numbers - and the experts - are saying.

What We've Seen So Far in 2025

• Early in the year, national average 30-year fixed rates were near 6.9% to 7.0%. Bankrate+2The Mortgage Reports+2

• Over spring and early summer, they eased to about 6.6% to 6.7% in many markets. Mortgage News Daily+3YCharts+3The Mortgage Reports+3

• In Idaho, borrowers have largely experienced that same drift - rates in the mid-6s are common. Bankrate+1

• Forecasts suggest that by year-end, the 30-year fixed rate may land closer to 6.4% if underlying conditions (inflation, bond yields, Fed action) cooperate. Fannie Mae

So yes - there's already been movement, but not earth-shattering changes.

 What That Means for Idaho Homebuyers (and What's Likely Ahead)

Knowing where rates started this year helps you see how much room there is for improvement - but also helps temper expectations.

• Given inflation, bond yields, and the Fed's cautious stance, experts generally expect only modest declines rather than a dramatic plunge.

• If rates fall, that could push more buyers into the market - which may put upward pressure on home prices, especially in desirable Idaho locales.

• So timing is tricky: waiting too long might expose you to more price competition, while locking in too early could mean missing out on small drops.

Should You Buy Now or Wait?

Here's what to weigh, with the 2025 numbers in mind:

• Buy Now: If you find a home you love, locking in a rate in the ~6.5% range might be a smart move. If rates drift downward later, you can always refinance.

• Wait (but carefully): If you're patient and market conditions align (inflation falls, bond yields drop), you might shave off a fraction. But waiting too long may mean higher home prices or more competition.

And in Idaho's hotter markets (like Boise, Meridian, Eagle), small shifts in demand can have outsized effects on prices.

Here is Home Price Data for Ada County and Canyon County for August

Pro Tip: Focus on What You CAN Control

Instead of chasing perfect rate timing, lean in on what you can influence:

• Explore Idaho Housing programs, down payment assistance, or state / local loan products.

• Consider VA / FHA / USDA options if eligible.

• Work with a mortgage team that knows Idaho - someone who can structure a loan that works for you, not just push you a generic rate.

Final Thoughts

So - will mortgage rates drop in 2025? Probably, but expect modest shifts, not dramatic dives. The smart move is to find a home you like, understand your loan options, and lock when you feel comfortable - you can always adjust later if rates improve.

🏡 Ready to see your options? Let's dig into a plan that works for you - contact us here.