In 2024, the path to lower mortgage rates seemed relatively clear-cut: Official inflation would go down, the Federal Reserve would carry out more interest rate cuts and the cost of borrowing would gradually ease in 2025.

After adding points the previous business day, 30-year mortgage rates moved lower, in line with the recent trend. Other loan types saw mixed movement.

These are today's mortgage and refinance rates. Mortgage rates are starting the year elevated, but they're expected to go down throughout 2025.

High mortgage rates aren't the only reason why homeownership has become a challenge. As mortgage rates soared in 2022, home prices hit record highs and an inventory shortage persi