Reena Oralie

What Will Interest Rates Be In 2025. If the jobs market were to weaken rapidly, causing recession fears to surface, then interest rates could end 2025 close to 3%. The good news, for those hoping for lower mortgage rates, is that a lot of that steepening could come from the fed cutting interest rates further rather than mortgage rates.

The fed has now cut rates by 100 basis points since september 2024. A dominant theme for fixed income markets in 2025 will be where us interest rates find themselves at the end of this rate cycle.