Many companies featured on Money advertise with us. Opinions are our own, but compensation and
in-depth research may determine where and how companies appear. Learn more about how we make money.

Pete Ryan for Money

Monitoring mortgage rates has practically become a national pastime as a growing number of homeowners race to refinance their loans and potential home buyers clamor for a piece of the action.

With the coronavirus crisis slowing the economy to a crawl, the Federal Reserve cut its key interest rate to near zero in March. The dramatic move opened the door to record low mortgage rates.

Though mortgage rates fluctuate based on market conditions, the average rate of the most popular home loan, the 30-year fixed, was 3.13% as of June 25, the lowest rate in Freddie Mac’s survey history, which dates back to 1971. A year ago at this time, the 30-year fixed-rate mortgage averaged 3.84%.

“Mortgage rates have hit another record low due to declining inflationary pressures, putting many home buyers in the buying mood,” said Sam Khater, Freddie Mac’s chief economist, noting that demand has not been this high since January 2009. “However, it will be difficult to sustain the momentum in demand as unsold inventory was at near record lows coming into the pandemic, and it has only dropped since then.”

“New home construction needs to robustly ramp up in order to meet rising housing demand,” said Lawrence Yun, the National Association of Realtors' chief economist. “Otherwise, home prices will rise too fast and hinder first-time buyers, even at a time of record-low mortgage rates.”

Indeed, existing-home sales fell in May, marking a three-month decline in sales as a result of the coronavirus outbreak, according to NAR.

Here are six predictions from housing industry experts on where mortgage rates are headed. The text has been lightly edited:

Tendayi Kapfidze

Rates are subject to change. All information provided here is accurate as of the publish date.