Mortgage Rates Hit 2025 Low as Recession Fears Rise

On The Market

BiggerPockets

News, Investing, Business, Education

4.8 • 820 Ratings

🗓️ 3 March 2025

⏱️ 27 minutes

🔗️ Recording | iTunes | RSS

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Summary

Mortgage rates are now at their lowest point in months, giving homebuyers and real estate investors some much-needed relief. But it isn’t all good news. With lower mortgage rates comes more market volatility, a weaker job market, recession risks, and new inflation fears. A lot is impacting the housing market, and in a time when nothing seems to make sense, Dave is breaking down the logic behind why mortgage rates are falling even as the Fed pauses. First, let’s talk about the good news: mortgage rates dropping half a percentage point from their three-month high to hit a new 2025 low. This is great news for buying real estate but may signal a bigger, more substantial economic shift. The bad news? Americans are growing fearful of the economy. A recession seems like it’s still in the cards, unemployment is rising, high-paying jobs are getting terminated left and right, and everything costs more. With all that taken into account, what should YOU, a real estate investor, do right now to ensure you still build wealth regardless of which direction the market moves? Should you lock down a mortgage rate now or wait for even greater interest rate relief? Stick around; Dave is giving a full analysis of today’s economic state. In This Episode We Cover A new 2025 mortgage rate LOW as rates drop below the 7% threshold Why Americans are pinching pennies and fearing for the economy Is a recession still possible, or are we close enough to a “soft landing”? How tariffs, inflation, and job losses (NOT the Fed) are moving mortgage rates What investors should do NOW if they’re under contract (or will be) for their next property And So Much More! Links from the Show Join the Future of Real Estate Investing with Fundrise Join BiggerPockets for FREE Sign Up for the On the Market Newsletter Find Investor-Friendly Lenders Dave's BiggerPockets Profile On The Market 290 - Redfin: Tariff Fears Drive Up Mortgage Rates, Throwing 2025 Off-Track Consumer Confidence Survey Consumer Sentiment Index - University of Michigan Invest in Any Market Cycle with “Recession-Proof Real Estate Investing” Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-300 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	There is so much happening right now. In just the last couple of weeks, there's just been a huge
0:05.4	amount of important housing, economic, and investor news coming out. And this is all stuff
0:12.2	that you should be paying attention to. But I know, realistically, that not everyone has time
0:17.1	to dig into the data and track all the important news. So I'm going to do it for you.
0:22.0	In today's episode, I'll give you a rundown of the most important recent investor updates
0:26.4	and help you make sense of what it means for you.
0:34.2	Hey, everyone. It's Dave, head of real estate investing at Bigger Pockets, and welcome to On the Market.
0:40.9	In just the last couple of weeks, we've seen a lot happen in the economic world.
0:45.5	Mortgage rates have somewhat mercifully moved down to their three-month lows.
0:49.8	We've seen big shifts in consumer sentiment.
0:52.5	We've seen tariffs announced, federal job cuts,
0:55.0	and a lot more.
0:56.0	And although realistically, not all of this is directly tied to housing or real estate investing,
1:02.0	obviously mortgages are, but some of those other ones are one or two steps removed.
1:07.0	But even so, all this plays a really important role in the general investment landscape.
1:13.7	So I'm going to use today's episode to catch everyone up on what's going on. And we're going to
1:18.7	start with the big mortgage news, probably what everyone wants to hear first. The headline here
1:24.5	is somewhat exciting that mortgage rates are down to a three-month low.
1:30.6	Now, I expect that a lot of people, if you listen to this show, you follow this stuff pretty
1:34.1	closely, but in case you haven't been paying attention, mortgage rates have been on somewhat
1:40.0	of a roller coaster for really the last couple of years, but mostly since September of
1:46.1	2024. They fell for most of the first half of last year on expectations of Fed rate cuts.
	...

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