When Will Mortgage Rates Drop 2025. For example, today, we have an 0.80% improvement on rates if you look at the worst spread levels of 2023 and. Our current expectation is that the fed will lower rates once in 2025, with a small chance they drop rates two times, says jason obradovich, a chief investment.

Bigger declines needed to spur buyer demand, economist says; High prices and tight supply.