Here's how far mortgage rates have dropped in 2025 (and how much further they can still fall)

The potential for mortgage rates to decline in the months ahead is growing now. Pla2na/Getty Images

If you've been a homebuyer or homeowner hoping to refinance in the past few years, it's understandable if you've stopped monitoring mortgage interest rates .

After declining to near record lows at the start of the decade, rates here rose exponentially after 2022, thanks to a surge in inflation. The Federal Reserve responded by raising interest rates and, soon, mortgage rates rose, too. They jumped so high, in fact, that at one point in 2023 they were sitting at their highest level since 2000 . This put homebuying and refinancing out of reach for all but a few select buyers and owners and essentially eliminated the need to monitor the mortgage rate climate.

But the economy is cha