Housing in 2025: Rates will drop under 6%, capital gains exemption will double

Ready for a new year and a reinvigorated housing market?

Here are my 2025 predictions for the market.

Freddie Mac mortgage rates are going to drop below 6% and stay in the mid-5s for most of the year. This year, we saw rates top out at 7.22% on May 22. Rates bottomed out at 6.08% on Sept. 26.

Also see: California homebuying jumps 20%, biggest gain in 41 months

The economy is strong, but Trump has vowed to raise import tariffs. This should mean rates are more likely to go up than come down.