The Federal Reserve made cuts to the benchmark interest rate three times at the end of last year, but the 30-year mortgage rate barely budged. And the Fed signaled that only two interest rate reductions would be planned for this year. Scotsman Guide asked NAMB President Jim Nabors what that portends for the mortgage industry in 2025?
“I don’t think we’re going to see much of a change in 2025 to the rates,” Nabors said. “They’re currently right around 7%. I’ve been in the business for a long time. They’ve always been somewhere between 6% and 8%, with the exception of in the early ‘80s when they went to 18% and then COVID when they went to 2.5% to 3.5%. What you’re going to see is a change in people’s attitude. People that are thinking that rates are going to get back to 2.5% or 3% or 4%, they’re setting unrealistic expectations.”
In the interview, Nabors expands on NAMB's legislative priorities, his expectations for a second Trump administration & why the mortgage business holds an attraction for him.
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