Will Mortgage Rates Ever Come Down? A Saint Louis Perspective

Let’s be honest—if you’ve been thinking about buying a home or refinancing in Saint Louis, MO, you’ve probably found yourself wondering: “Will mortgage rates ever come down?” You’re not alone! Many folks in the Midwest are asking the same thing as rates have climbed higher than we’ve seen in years. Let’s break down what’s happening, what the experts are saying, and what it all means for you.

Where Are Mortgage Rates Right Now?

As of July 2025, the average 30-year fixed mortgage rate in the Saint Louis area is hovering around 6.6% to 6.9%, according to local lenders and national data from Freddie Mac. For comparison, rates were under 3% just a few years ago! That’s a big jump, and it’s left many buyers feeling a bit nervous.

Why Did Rates Go Up?

Mortgage rates are closely tied to inflation and the Federal Reserve’s decisions. When inflation surged in 2022 and 2023, the Fed raised its benchmark rate to cool things down. That made borrowing more expensive—including for home loans.

Are Rates Expected to Drop?

Here’s the good news: most experts believe rates will eventually come down. According to Lawrence Yun, Chief Economist at the National Association of Realtors, “We’re likely to see mortgage rates gradually decline as inflation continues to ease and the Fed signals it’s done with rate hikes.”

Fannie Mae’s latest forecast predicts that 30-year rates could dip closer to 6% by early 2026. Some optimistic analysts even think we could see rates with a 5-handle if the economy slows more than expected.

What Does This Mean for Saint Louis Buyers?

• If you’re buying now: Shop around—local banks and credit unions in Saint Louis sometimes offer special programs for first-time buyers or lower rates for certain neighborhoods.
• If you’re waiting: Keep an eye on the market, but remember, home prices in the Midwest tend to be more stable than on the coasts. Waiting for a perfect rate could mean missing out on the right home.
• If you already own: If rates drop significantly in the next year or two, refinancing could be a smart move to lower your monthly payment.

Expert Tip: “Don’t try to time the market perfectly,” advises local mortgage broker Sarah Jensen. “Instead, focus on what you can afford now, and be ready to refinance if rates fall.”

The Bottom Line

Mortgage rates in Saint Louis—and across the Midwest—are likely to gradually come down, but probably not overnight. Staying informed, flexible, and working with a trusted local expert is your best bet. If you have questions or want to talk about your options, I’m here to help!