Mortgage Interest Rates Forecast

Mortgage rates nudged a bit lower this week, with the average 30-year fixed slipping to 6.25% APR, according to rates provided to NerdWallet by Zillow. But rates weren’t what got everyone talking. That honor went to President Trump’s social media post floating the idea of a 50-year mortgage — a concept that immediately set off a flurry of hot takes from housing economists. On paper, the appeal is obvious: smaller monthly payments. In practice, though? It’s a financial marathon. Stretching a $400,000 loan over five decades might save you about $130 a month, but it would tack on more than half a million dollars in interest over the life of the loan.

And that’s just the start of the trade-offs. Experts say a 50-year term would make it painfully slow to build equity, putting homeowners at greater risk if prices fall — and potentially driving home prices even higher by juicing demand without adding supply. Plus, with the average first-time buyer now around 40 years old, a loan that runs half a century could mean still writing mortgage checks at age 90. So while a 50-year mortgage might sound like a creative fix for affordability, it’s really more of a reminder: a lower monthly payment today can come with a sky-high price tag tomorrow.

November Mortgage Rates Forecast

It’s unclear whether central bankers will continue cutting rates when they meet again in December. For now, the Fed’s focus may be shifting from protecting jobs to keeping inflation in check. A modest rebound in hiring last month may ease concerns about unemployment, and inflation remains slightly above the Fed’s target. Raising the federal funds rate is the Federal Reserve's method for curbing inflation. That means another rate cut is not guaranteed — and mortgage rates could keep inching upward.

»MORE: How the Fed Affects Mortgage Rates